Ondo: Buy or Burn? 💸🔥

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Key Takeaways

Ondo’s price action and metrics are at odds – the price chart showed imminent losses for the token, while the metrics revealed ONDO was undervalued. Both can be true simultaneously. 🤯

Ondo [ONDO], the governance token of the Ondo decentralized autonomous organization (DAO), has been holding on to a key support level at $0.87 since mid-July. Like a toddler clinging to a snack, it’s not letting go. 🍫

Over the past month, the rest of the altcoin market has also struggled to find momentum. It’s like a toddler’s nap – nothing happening, but you’re still exhausted. 🍼

This could be due to the volatility around Bitcoin [BTC] and Ethereum [ETH], both of which lacked a clear trend in recent weeks. Bitcoin and Ethereum are as predictable as a toddler’s mood. 😭

On the ONDO daily chart, the market structure was bearish. The chart is as cheerful as a wet cat in a thunderstorm. 🐱⚡

The token has made lower highs over the past three weeks. Moreover, its CMF was well below the -0.05 threshold. This indicated severe capital outflows from the market and seller dominance. It’s like a party where everyone’s leaving early. 🚪

If this selling pressure continues, ONDO might fall past the $0.87 support zone. Don’t worry, it’s just a small leap. 🪂

Is ONDO undervalued right now?

Data from Santiment revealed that the network growth and daily active addresses metrics were relatively unchanged since late July. The network is as active as a snoozing cat-neither growing nor shrinking. 🐱💤

This steady trend showed the network was neither expanding nor losing ground. This was a positive outcome at a time of price volatility. Positive? More like “meh.” 🤷‍♂️

Interestingly, the age consumed metric was also relatively quiet in recent weeks. This metric tracks the movement of previously idle tokens. It’s like a zombie apocalypse for tokens-nothing happening, thank goodness. 🧟‍♂️

A flurry of dormant token movement would result in a surge in the age consumed. A surge in age consumed would be like a zombie apocalypse for tokens. Not happening, thank goodness. 🧟‍♂️

This would be indicative of idle coins being moved in great numbers, something that occurs before or during a sell-off. It’s like a pre-sale for a sell-off. 🛒

Since this has not happened even though ONDO prices were straddling a key support, it was an encouraging sign. Encouraging? More like “I hope this doesn’t backfire.” 🤞

The supply distribution reflected steady buying pressure from the smaller wallets, holding up to 1M ONDO. Wallets with larger holdings, from 1M to 100M, have reduced in number slightly over the past ten days. Smaller wallets are buying like it’s Black Friday, while bigger wallets are taking a step back. Smart move, maybe. 🛍️

Combined with the age consumed metric, they signaled some accumulation for ONDO. Accumulation? More like “I’m not sure, but let’s try.” 🤷‍♀️

The Spent Output Profit Ratio (SOPR) was at 0.98 at the time of writing. As it is a representation of the price sold / the price paid, values lower than 1 imply holders are at a loss. SOPR is at 0.98, which means holders are losing money faster than a toddler at a candy store. 🍬💸

The SOPR has hovered around 0.9-1 since late July, with a brief surge to 1.4 in August. The low SOPR numbers recently indicated that it could be a good buying opportunity since ONDO was likely undervalued. Good buying opportunity? More like “I’m not sure, but let’s try.” 🤷‍♂️

As the CMF on the 1-day chart signaled, such a buy would come with its risks, and traders and investors must be wary of further price losses. Risks? Always a good idea to be wary. 🚨

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2025-09-06 08:44