Analysts Predict Ondo Finance Surge Amid -63% Funding Rate Drop

• Despite strong fundamentals, ONDO price remains below a descending trendline, down 34% since January 4.
• Negative funding rates (-63.73%) suggest the potential for a sharp reversal as selling pressure weakens.
• ONDO’s leadership in real-world asset (RWA) tokenization positions it for long-term growth in the crypto market.

With Bitcoin surpassing $100,000, the altcoin cryptocurrency market cap has reached a significant high of $1.49 Trillion. This marks an 18% surge since January 13 and a 6.11% increase in intraday trading within the altcoin market.

The improving market sentiment has breathed new life into several altcoins, with tokens like XRP and ADA leading the charge. However, Ondo Finance (ONDO) has struggled to join the rally, remaining stuck below a dynamic trendline despite its strong fundamentals.

The start of 2025 has been particularly rough for the ONDO price, which suffered a significant selloff in early January. The token has seen a 34% drop since January 4, extending its downward trajectory from December 2024.

This bearish performance has raised doubt on ONDO’s immediate prospects. However, optimism is slowly building as the incoming Trump administration stirs hope for a broader crypto rally.

Moreover, Ondo Finance remains a project with immense potential, especially in the growing field of RWA tokenization. This emerging trend positions ONDO crypto as a potential standout in the altcoin market during the current bull cycle.

Top crypto analysts have recently hinted at ONDO as a token to watch. They cited its potential as a key player in the developing asset tokenization sector. Martinez’s insights suggest that ONDO crypto could present an intriguing opportunity for investors eager to capitalize on this trend.

When writing, the ONDO price traded at $1.236, reflecting a modest gain of 1.63% over the last 24 hours. Keep reading to know more.

Top Analyst Supports Bullish Sentiment For ONDO Finance

The recent price action of Ondo Finance hinted at a promising bullish setup. Also, insights from renowned crypto analyst Ali Martinez added weight to this outlook. In a recent post on X, Martinez drew attention to an unusual phenomenon in the Ondo derivatives market.

He said he witnessed a staggering negative funding rate of -63.73% on the liquidation heatmap. This rare setup, where exchanges pay traders for bullish positions, typically signals extreme selling pressure.

Despite that, the ONDO price resilience in the face of such bearish sentiment suggested a deeper underlying market strength. Martinez views this as a calculated risk worth taking, highlighting the potential for sharp reversals as market conditions stabilize.

This is making it an exciting opportunity for investors. Similarly, it indicated that ONDO crypto’s foundation and leadership in RWA tokenization make it a noteworthy altcoin despite price drops.

Adding to the bullish hope is the potential for a short squeeze. Many traders have bet on further declines in ONDO price through overconfident short-leverage positions. They could find themselves caught off guard if bullish momentum suddenly resumes.

That’s because a rise in buying pressure may overwhelm these short positions. Furthermore, it could trigger a rapid upward price movement.

Ondo Finance presents an attractive risk-reward proposition for those seeking opportunities in the altcoin market. The negative funding rate hints a potential influx of bullish activity might join at this juncture.

ONDO Finance Hints A Bullish Break Ahead

The Ondo Finance price was trading at $1.23, navigating through a turbulent price landscape in recent sessions. The token’s trajectory has seen significant volatility, plummeting to a low of $1.09 before rebounding to a local high of $1.30.

Despite this recovery attempt, bears remain in control, overshadowing the broader market’s improving sentiment. From a deeper technical perspective, the ONDO price has struggled to break above a descending trendline. That has acted as a persistent ceiling since December.

For bulls to regain control, clearing this trendline and surpassing the 20-day and 50-day EMA band will be pivotal. Such a breakout could potentially spark renewed bullish momentum.

Similarly, A crucial milestone for ONDO Finance lies at the $1.50 resistance level. Reclaiming this mark could reignite buying interest and set the stage for further upward movement.

Suppose the bulls successfully clear this hurdle; the next key target would be $1.578. If flipped into support, this level could indicate a shift to a sustained bullish trend. Beyond this, ONDO price may aim for higher targets at $2.14, $2.32, and $2.60, offering significant upside potential.

On the downside, critical support lies at the 200-day EMA near the $1.00 psychological level. If bearish momentum intensifies, the $0.80 level would be the following line of defense. This could serve as a crucial threshold for maintaining long-term market confidence.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.