Ondo Finance, a key player in real-world asset tokenization, remains in a bear market, having fallen more than 45% from its November 2024 high.
Ondo (ONDO) price was trading at $1.60 on Thursday, marking a 30% increase from its lowest level this year. However, strong technical and fundamental indicators suggest a potential rebound in the coming weeks.
A key factor supporting a potential recovery is the continued growth of Ondo Finance’s ecosystem. According to DeFi Llama, the total value locked in Ondo’s ecosystem has surpassed $1 billion for the first time. This marks a significant increase from $541 million at the start of the year.
This growth is driven by its two tokenized assets: Ondo Short-Term US Treasuries Fund (OUSG) and Ondo US Dollar Yield Token (USDY.) USDY currently holds over $589 million, while OUSG has $419 million in assets.
Both OUSG and USDY provide daily yield generation by investing in U.S. Treasury Bills. USDY offers an annual percentage yield of 4.35%, while OUSG yields 4.03%.
Ondo’s price could also be influenced by investments from Donald Trump’s World Liberty Financial. WLFI now holds 342,000 ONDO tokens, valued at over $400,000. Ondo was one of the top donors to Trump’s inauguration committee, which has fueled speculation that the project may be considered for inclusion in the U.S. strategic crypto reserves.
Ondo price analysis
The daily chart shows that Ondo Finance has been in a strong downward trend in recent months, in line with a broader market decline.
On the positive side, the coin has formed a falling wedge pattern, which comprises two descending and converging trendlines. A bullish breakout usually happens when the two lines are nearing their confluence levels.
Ondo price has also formed a cup and handle pattern, another popular continuation sign. The upper side of this pattern is $1.4825, while its depth is 65%. There, measuring this distance from the upper side of the cup brings the Ondo price target at $2.4610, up by 113% from the current level.
