Ondo Finance, a prominent player in the tokenization of real-world assets, is currently experiencing a downturn in the market, with a decline of over 45% from its peak in November 2024.
The price of Ondo (ONDO) was at $1.60 on Thursday, showing a 30% increase from its lowest point this year. Despite this, there are strong technical and fundamental indicators that suggest a potential rebound in the near future.
One of the key factors supporting a potential recovery is the continuous growth of Ondo Finance’s ecosystem. DeFi Llama reports that the total value locked in Ondo’s ecosystem has exceeded $1 billion for the first time, a significant increase from $541 million at the beginning of the year.
This growth is largely driven by Ondo’s two tokenized assets: Ondo Short-Term US Treasuries Fund (OUSG) and Ondo US Dollar Yield Token (USDY). USDY currently holds over $589 million in assets, while OUSG has $419 million. Both tokens offer daily yield generation by investing in U.S. Treasury Bills, with USDY providing an annual percentage yield of 4.35% and OUSG yielding 4.03%.
Additionally, investments from Donald Trump’s World Liberty Financial could also impact Ondo’s price. WLFI now holds 342,000 ONDO tokens, valued at over $400,000. Ondo’s significant contribution to Trump’s inauguration committee has sparked speculation that the project may be considered for inclusion in the U.S. strategic crypto reserves.
In terms of price analysis, Ondo Finance has been on a downward trend in recent months, aligning with the broader market decline. However, the coin has formed a falling wedge pattern and a cup and handle pattern, both of which are bullish indicators pointing towards a potential price target of $2.4610, a 113% increase from the current level.
Overall, despite the current bear market conditions, Ondo Finance’s ecosystem growth and potential partnerships could pave the way for a positive price reversal in the coming weeks.