ONDO Price Surges 1.36% as Technical Indicators Flash Overbought Warning
Alvin Lang Jul 22, 2025 03:11
Ondo (ONDO) trades at $1.07 with RSI hitting 74.89, signaling potential pullback despite strong bullish momentum continuing across all timeframes.
Quick Take
• ONDO currently trading at $1.07 (+1.36% in 24h) • Ondo's RSI reaches overbought territory at 74.89, suggesting potential short-term correction • Strong bullish momentum persists with price trading near 52-week highs
What's Driving Ondo Price Today?
The ONDO price action over the past 24 hours reflects continued institutional interest in real-world asset (RWA) tokenization, Ondo's primary use case. While no major news catalysts emerged in the past week, the sustained buying pressure suggests ongoing accumulation by long-term investors positioning for the expanding tokenized securities market.
Ondo's consistent performance above key moving averages indicates strong underlying demand, with the token maintaining its position as a leading player in the bridge between traditional finance and decentralized finance protocols.
ONDO Technical Analysis: Overbought Signals Emerge
Based on Binance spot market data, Ondo technical analysis reveals a complex picture of strength mixed with caution signals. The most prominent indicator is ONDO RSI reaching 74.89, well above the traditional overbought threshold of 70. This suggests the recent rally may face near-term resistance as momentum traders consider profit-taking opportunities.
However, the broader technical structure remains bullish. Ondo's MACD shows positive momentum with the main line at 0.0700 trading above the signal line at 0.0505, generating a bullish histogram reading of 0.0195. This indicates the underlying trend strength continues despite overbought conditions.
The Stochastic oscillator reinforces the overbought narrative, with Ondo's %K at 84.32 and %D at 85.32, both signaling potential short-term consolidation. The ONDO/USDT pair's position relative to Bollinger Bands at 0.8977 shows price trading near the upper band resistance of $1.12, suggesting limited upside room in the immediate term.
Ondo Price Levels: Key Support and Resistance
Critical Ondo support levels emerge at $1.08 (pivot point) and $0.76 (immediate support), with strong support holding at $0.62. These levels become crucial if profit-taking materializes from current overbought conditions.
On the upside, ONDO resistance sits firmly at $1.13, representing both the 24-hour high and immediate resistance level. A break above this level could target the 52-week high of $1.10, though this appears counterintuitive given current overbought readings.
The daily ATR of $0.07 suggests traders should expect moderate volatility, with typical daily moves ranging around 6-7% from current levels. This volatility measure supports the case for potential pullbacks from resistance zones.
Should You Buy ONDO Now? Risk-Reward Analysis
For swing traders, the current ONDO price presents a challenging entry point given the overbought RSI conditions. A more prudent approach would involve waiting for a pullback toward Ondo support levels around $0.76-$1.08 range, where risk-reward ratios improve significantly.
Long-term investors may view any weakness as accumulation opportunities, particularly given Ondo's position in the expanding RWA tokenization sector. However, immediate buyers should prepare for potential 10-15% corrections given the technical warning signals.
Day traders should focus on the $1.13 resistance level for short opportunities, with stops above the 52-week high. Conversely, any break below the pivot at $1.08 could trigger momentum selling toward the $0.76 support zone.
Position sizing becomes critical at these levels, with recommended risk management keeping exposure under 2-3% of portfolio value given the elevated technical risks.
Conclusion
The ONDO price faces a critical juncture as bullish momentum meets overbought technical conditions. While the overall trend remains very strong bullish, traders should exercise caution over the next 24-48 hours as RSI levels suggest potential consolidation or pullback. The key level to watch is $1.13 resistance - a decisive break could extend gains despite overbought warnings, while rejection may trigger the anticipated technical correction toward Ondo support levels.
Image source: Shutterstock.jpg)
