Published: January 30, 2025 at 1:28 am
Updated on January 30, 2025 at 1:28 am
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Here we are, folks. The crypto market has been buzzing about $ONDO lately, especially after its spot volume surged and the funding rates hit the floor. The big question is: are we on the cusp of a major breakout, or is there more to the story?
Spot crypto trading is pretty simple at its core. You’re buying and selling actual cryptocurrencies and not playing around with futures or options. This means the assets are delivered immediately, which can be pretty straightforward. But in a market this volatile, knowing how to read the room is essential.
In the last 10 days, $ONDO has seen spot buying skyrocket to an impressive 223.79 million. At the same time, funding rates have plummeted to one of the lowest levels we’ve seen, -4% per 24 hours. This could indicate that a lot of people are shorting it on perpetual contracts while there’s massive demand in the spot market. Are we looking at a short squeeze brewing, or is it more complicated than that?
As pointed out by Dom (@traderview2), the funding rate for this token has hit rock bottom. This is usually a sign of heavy shorting in the derivatives market. Yet, the spot volume has also surged, suggesting that retail or institutional buyers are piling in. You can see the two lines on the chart diverging, which usually spells trouble for one side.
The funding rate suggests that short-sellers are flooding the market with their bets. But the overwhelming spot demand could end up trapping them in a precarious situation, leading to some upward volatility.
On the 12-hour chart, $ONDO is around $1.322, having climbed from below $1 to nearly $1.6. The price seems to be consolidating, with both bulls and bears holding their ground. The influx of spot volume and low funding rates suggest that this isn’t quite over yet. Pullbacks might just be chances for buyers to jump back in.
Dom makes a good point: this price action is not “normal.” The fundamentals for $ONDO are solid, likely tied to its role in the DeFi ecosystem. What’s driving this? Increased utility? Partnerships? We don’t know yet, but it seems to be something substantial.
Market psychology is such a big part of this whole thing. Psychological levels can create significant support and resistance. Fear, greed, hope, and uncertainty can lead to exaggerated moves. Fear can make people sell prematurely, while greed can push them to chase prices.
With the combination of high spot volume, negative funding rates, and solid fundamentals, $ONDO may be at a turning point. If the shorts can’t hold their positions amid increasing pressure, we might see a breakout above $1.6, possibly hitting $2.0 or more down the line. But if the spot buying slows, we could see a longer consolidation phase.
Keep an eye on $ONDO, folks. This is a fascinating mix of technicals and psychology, and the stakes are high.
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