- Ondo is set to unlock $2.2 billion worth of tokens into the market amid the ongoing liquidation that has forced the asset to decline by 38% in the last 30 days.
- The current pullback was rightly predicted by an analyst who predicted a 30% correction from a crucial support level.
The crypto market is expected to heat up this week as Ondo Finance announces token unlock with billions of dollars set to enter the market. According to data from Tokenomics, 1.94 billion ONDO ($2.23 billion) would be released on January 18. Fascinatingly, this represents 130% of the circulating supply of 1.4 billion. Additionally, the amount set to be unlocked is significantly higher than the 24-hour trading volume, which has been rotating within the range of $250 million to $300 million.
More About the Ondo Token Unlock
Researching this, we found that the reason is linked to the decision to prevent early investors and team members from liquidating coins at once. Together with ONDO, other tokens, including ARB, STRK SEI, etc., are also embarking on a similar initiative. Currently, Ondo remains one of the worst-performing cryptos, as previously highlighted in a CNF report. It currently has a 24-hour decline of 8.9%, a weekly decline of 23.9%, and a monthly decline of 38.8% as it trades at $1.1.
Meanwhile, analysts believe that Ondo could recover a significant portion of its loss in the coming weeks. According to Santiment data, addresses holding between 100 million and 1 billion ONDO tokens have recorded a substantial increase. However, the balance of this category underwent serious selling pressure on January 6 to position the amount at negative 160.22 million ONDO.
As of the time of writing, this balance had improved to negative 146.02 million tokens as whales accumulated $14 million in just a week. According to analysts, a continuation of this trend could see the price flipping to a bullish trend. Meanwhile, its current correction was accurately predicted by analyst Ali Martinez.
Previous Ondo Prediction by Ali Martinez
Speaking to his followers in December, Martinez highlighted that the asset was at risk of further correction as Ondo recorded the formation of a head-and-shoulders pattern on its chart. According to analysts, this formation is usually linked to a bearish reversal. At the time of this prediction, the asset had halted at the $1.55 level, which served as a crucial support level.
Martinez also pointed out that a decisive fall below the $1.48 level would trigger a 30% correction to “drag” the price to $1.05. Currently, the $1.49 remains a crucial resistance level. A move above this point triggered by a recent partnership report by CNF could see Ondo hitting $1.86.
Pending this future rebound, Ondo has become one of the favorites of Donald Trump’s family crypto project, World Liberty Financial. As we mentioned in a report, World Liberty Financial recently spent $44.74 million in USDC on ETH, LINK, AAVE, and ONDO.
For expert Joshua Jake, ONDO would certainly reward investors who exercise patience.
What Happened to $Ondo 😭
Oh wait zoom out to when we first talked about it. If you cant HODL you won’t get rich. pic.twitter.com/09LUKpDtgR— Joshua Jake (@itzjoshuajake) January 12, 2025
