Ondo Finance (ONDO) Price Prediction: Decrease in Active Addresses Leads to Slower Network Speed, Derivatives Market Remains Optimistic

Today (4th) in the European morning session, Ondo Finance (ONDO) has seen a price correction, currently reported at 0.7788 USD, with a daily decline of over 4%. Ondo announced that it has secured a $250 million investment from Pantera Capital to support its catalyst program focused on the tokenization of real-world assets (RWA). Data shows that the decrease in active addresses for ONDO has led to slower network speeds, while the derivatives market remains optimistic.

Despite the large sponsorship amount, the popularity of the derivatives market (increase in open interest) has not translated into a surge in spot prices. As ONDO has failed to break through the resistance trend line over the past two months, the technical outlook appears slightly bearish.

Pantera Invests $250 Million to Drive RWA Tokenization

Ondo Finance announced on Friday that Pantera Capital has committed $250 million to the Ondo Catalyst program. Pantera will support the tokenization of the risk asset (RWA) through independent assessments and investment projects. At the same time, Ondo's Catalyst initiative will also aid the program in joining its ecosystem.

Paul Veradittakit, managing partner at Pantera Capital, stated: "The tokenization of traditional financial assets is the biggest shift in the infrastructure space since electronic trading, and Ondo is at the forefront of this area with the right traction and partners."

The decrease in active addresses leads to slower network speeds

The Daily Active Addresses (DAA) refer to the unique addresses that are active on the network, which is a key indicator of the network's strength. The surge in DAA is related to the increase in the number of platform users, which may increase the demand for the native Token, and vice versa.

Santiment's data shows that as of this Friday, the Daily Active Addresses (DAA) for ONDO Island is 1,308, down from a peak of 2,331 in mid-June. With the downward trend in Daily Active Addresses (DAA), the network transmission speed for ONDO Island is slowing down.

The ONDO derivatives market remains optimistic

Coinglass data shows that the open interest (OI) for ONDO contracts has increased by 2.80% in the past 24 hours, reaching $319.41 million. Typically, off-exchange investors may view the surge in OI as a spike in optimistic sentiment in the derivatives market, as buying activity increases.

The OI weighted financing rate remains at a positive value of 0.0052%, paid by the bulls, to balance the spot and swap prices.

ONDO failed to break through the key resistance trend line

As of the time of writing on Friday, ONDO has depreciated by more than 3%, offsetting the 1.50% gain from Thursday. The price trend may form a Evening Star pattern, which indicates a bearish reversal following a short-term rebound on the daily chart.

The dusk star will form at the key resistance trend line, which connects the highs of May 12 and June 11. As buyers have failed to surpass the trend line, the downtrend may test the 23.6% Fibonacci retracement level at $0.7165, retracing from the high of $1.1348 on May 14 to the low of $0.6216 on June 22.

The Moving Average Convergence Divergence (MACD) indicator reflects a stagnation in the upward trend, as the intraday green histogram slightly retreated after rising above the zero line. Investors looking for sell signals can consider the MACD line crossing below the signal line as a potential signal.

The Relative Strength Index (RSI) is at 48, making it difficult to maintain a neutral level as it has reversed from the midpoint.

The decline of the RSI indicates a bearish trend momentum.

However, if it closes higher on Friday, continuing the gains from the previous day, it will mark a breakthrough of the resistance trend line. In this case, the upward trend may reach the Fibonacci 50% level, which is 0.8399 USD.

(Source: Trading View)