Ondo: Analyzing the upcoming growth prospects

Ondo (ONDO), the governance token of the decentralized autonomous organization Ondo (DAO), has persistently held at the important support level of 0.87 USD since mid-July.

However, the overall picture of the altcoin market in the past month has been quite bleak, as most cryptocurrencies are struggling to find growth momentum. The main reason is the unpredictable volatility of the two "leading" cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), which have not shown a clear trend in recent weeks.

ONDO/USDT Daily Chart | Source: TradingViewObserving the daily chart, the price structure of ONDO is leaning towards a downtrend. Over the past three weeks, this token has continuously formed lower highs. Notably, the CMF indicator remains below the -0.05 threshold, reflecting that capital is leaving the market and selling pressure is dominant. If this situation continues, the risk of ONDO breaking below the support area of 0.87 USD is entirely possible.

Is ONDO being undervalued?

Source: SantimentAccording to data from Santiment, the growth rate of the ONDO network and the number of active daily addresses have remained relatively stable since the end of July. This stability indicates that the network is neither expanding nor weakening, reflecting a solid foundation even as prices fluctuate significantly.

Notably, the age consumed indicator – which tracks the movement of long-dormant tokens – has remained quite quiet for many weeks. Typically, a sudden spike in this metric often signals large sell-offs. The fact that this signal has not appeared, even as ONDO is struggling at an important support level, is considered a positive factor.

Source: SantimentIn terms of supply distribution, the buying power from small wallets holding up to 1 million ONDO( remains steady. In contrast, the number of large wallets holding 1–100 million ONDO) has slightly decreased in the last 10 days. Combined with data from age consumed, this indicates that ONDO may be entering an accumulation phase.

Source: GlassnodeMeanwhile, the output profit ratio has spent (SOPR) currently at 0.98. A number below 1 indicates that most investors are selling at a loss. SOPR has fluctuated around 0.9–1 since the end of July, except for a spike to 1.4 in August. The current low may open up buying opportunities, as ONDO is being undervalued by the market.

However, the signal from the daily CMF warns that risk pressure still exists. Therefore, both long-term investors and short-term traders should remain cautious, avoiding emotional reactions in the context of an unclear price trend.

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