- An ONDO whale offloaded 2.69 million tokens worth $2.13 million.
- The altcoin faced massive downward pressure, dipping 10.76% in seven days.
Since hitting $0.92 a week ago, Ondo Finance [ONDO] has experienced massive downward pressure. Amid this pressure, large holders are starting to exit the market, fearing more losses.
Ondo whale dumps 2.69 million tokens
Whales have returned to the market, as evidenced by the Spot Average Order Size.
It has remained dominated by big orders over the last month, implying significant whale activity despite concerns over ONDO’s prospects.
Source: CryptoQuant
According to X (formerly Twitter) account Onchain Lens, an ONDO whale, who had held 2.69 million tokens for 2.5 months, returned to the market and sold its holdings for $2.13 million on the 17th of June.
With this transaction, the whale has managed to record $123k in profit. The sale could also indicate a strategic exit as prices dipped, to ensure the holdings do turn into losses.
This whale movement also suggests bearish sentiment, as the holders could be anticipating more losses, moving forward.
Source: IntoTheBlock
Notably, the Large Holder Netflow has held within negative territory over the past two days, showing increased sell pressure. Whales have sold 4.85 million tokens in this time.
Will selling pressure cause more losses?
According to AMBCrypto’s analysis, ONDO was experiencing downward pressure at press time as sellers took over the market.
Source: CoinGlass
The netflow was positive at press time, reaching a high of $762k. This is once again a sign of high selling activity, as a positive spot netflow implies more inflow than outflow.
Amid this market activity, ONDO’s directional momentum indicators indicated a potential continuation of the current trend.
Notably, the MACD declined sustainably over the past five days since making a bearish crossover. This reflects strong momentum to the downside.
Further, the Relative Strength Index (RSI), which declined to almost oversold territory of around 37 at press time, reflected seller dominance as well.
Source: Trading View
Thus, ONDO is now in a position of weakness that can result in more losses. If the current trends and sentiments persist, the altcoin will seek support around $0.75, where it previously bounced back from.
However, if this support fails, ONDO will decline to $0.72. For a trend reversal, buyers need to return to the market and absorb the current sell pressure, thus ensuring ONDO reclaims $0.80 and holds above it.
