ONDO bulls eye $0.50 breakout following massive weekly rally

The cryptocurrency market is currently experiencing a mixed performance, with some major coins in the red, while others are rallying.

ONDO, the native coin of the Ondo Finance ecosystem, is one of the best performers among the top 50 cryptocurrencies by market cap.

The coin is up by 5% on Monday, having gained more than 8% earlier in the Asian session after last week’s roughly 50% rally.

The rally comes following the recent announcement of the first-ever tokenized Treasury bill settlement.

However, retail confidence shows early signs of weakness as funding rates turn negative.

The momentum indicators remain largely bullish, suggesting that ONDO could experience a breakout rally exceeding $0.50.

ONDO rallies despite declining retail strength 

ONDO is up 5% in the last 24 hours and is now trading at $0.4267 per coin.

The positive performance comes after Ondo rallied roughly 50% last week, driven by the first-ever tokenized settlement of a short-term US Treasury bill in partnership with J.P. Morgan, Mastercard, and Ripple. 

However, retail confidence in ONDO is declining and this could result in a correction in the near term.

CoinGlass data shows the ONDO futures Open Interest is up 5% over the last 24 hours, reaching $213.77 million, implying steady positional buildup in the leverage market. 

Despite that, the funding rate has flipped negative to -0.0065%, suggesting that traders are willing to pay a premium to hold short positions.

Hence, retail traders are anticipating a potential reversal. 

Furthermore, ONDO’s long-to-short ratio of 0.9497 suggests a larger number of active short positions. Finally, 

ONDO price forecast: Will the bulls push above $0.50?

Unlike other major cryptocurrencies, the ONDO/USD 4-hour chart is bullish thanks to its rally in recent days. 

ONDO is trading at $0.4267, well above its 200-day EMA at $0.4022, with the 100-day EMA at $0.3103 and the 50-day EMA at $0.2993 trailing far below and preparing for a Golden Cross.

Momentum indicators remain bullish but could be showing overbought signs.

The Moving Average Convergence Divergence (MACD) rallies above the signal line on the 4-hour chart. 

The Relative Strength Index (RSI) around 66 signals bullish conditions that could encourage consolidation or a corrective pause.

If the bulls push higher and close the daily candle above the $0.4524 resistance level, last tested on January 7, ONDO could extend its rally above the $0.5000 psychological level, targeting the $0.5625 level, last seen on November 17.

However, if the bears regain control, initial support would be encountered at the 200-day EMA near $0.4022, where a pullback could test the durability of the latest breakout. 

A break below this support would expose the next demand area around the 100-day EMA at $0.3103, followed by the 50-day EMA at $0.2993.

Hitting this level would result in the where the broader bullish structure coming under pressure.