ONDO Price Surges 12% After Bullish Pennant Breakout – Technical Analysis Shows Strong Momentum

Quick Take

• ONDO currently trading at $1.12 (+3.82% in 24h)
• Confirmed breakout from bullish pennant pattern drives 12% surge to $1.06 high
• Tokenized securities expansion on Ethereum provides fundamental support

What’s Driving Ondo Price Today?

The ONDO price action over the past week tells a compelling story of technical momentum building on fundamental developments. On September 10, ONDO confirmed a breakout from a bullish pennant pattern, triggering a sharp 12% intraday surge that pushed the token to $1.06 before settling at current levels around $1.12.

This technical breakout followed Ondo Finance’s September 6 announcement expanding its tokenized U.S. stocks and ETFs on Ethereum. The platform now offers non-U.S. investors 24/7 access to over 100 tokenized securities, with ambitious plans to scale to over 1,000 by year-end. While the initial announcement had a neutral impact on ONDO price, consolidating around $0.90, the subsequent technical breakout has validated the bullish sentiment surrounding these developments.

The combination of expanding real-world asset tokenization and strong technical momentum has positioned ONDO for potential continued gains, with today’s 3.82% advance building on the recent breakout momentum.

ONDO Technical Analysis: Strong Bullish Signals Emerge

Ondo technical analysis reveals multiple bullish indicators aligning for potential continued upside. ONDO’s RSI currently sits at 68.81, approaching overbought territory but still within a neutral zone that suggests room for further gains before hitting exhaustion levels.

The moving average structure strongly favors bulls, with ONDO trading well above all key averages. The current $1.12 price sits significantly above Ondo’s SMA 20 at $0.95 and SMA 50 at $0.97, indicating strong momentum. The EMA 12 at $1.01 and EMA 26 at $0.98 show the shorter-term trend accelerating upward.

ONDO’s MACD tells an equally bullish story, with the main line at 0.0292 well above the signal line at 0.0046. The MACD histogram reading of 0.0246 confirms strengthening bullish momentum for Ondo. The Stochastic indicators at %K 94.10 and %D 93.73 suggest ONDO is in overbought territory, potentially signaling a near-term pause or pullback.

Perhaps most telling is ONDO’s position relative to Bollinger Bands. With a %B reading of 1.1028, ONDO is trading above the upper band at $1.09, indicating strong momentum but also suggesting the token may be due for consolidation near current levels.

Ondo Price Levels: Key Support and Resistance

Based on Binance spot market data, ONDO faces immediate resistance at $1.14, which coincides with both the strong resistance level and the 52-week high. This level represents a critical test for bulls – a break above could signal a move into uncharted territory.

On the downside, Ondo support levels are well-defined. The immediate support sits at $0.86, representing a significant buffer below current prices. More critically, strong support at $0.84 provides a key floor for any potential pullback. The pivot point at $1.10 may serve as dynamic support on minor corrections.

The wide gap between current ONDO price at $1.12 and immediate support at $0.86 suggests either strong underlying demand or potential for significant volatility. Traders should note that ONDO’s daily ATR of $0.06 indicates moderate volatility, providing both opportunity and risk.

Should You Buy ONDO Now? Risk-Reward Analysis

For momentum traders, the current setup presents an intriguing but risky opportunity. ONDO’s breakout from the bullish pennant pattern and position above all moving averages supports a bullish bias. However, with ONDO’s RSI approaching overbought levels and the token trading above Bollinger Band resistance, timing becomes crucial.

Conservative traders might wait for a pullback toward Ondo support levels around $1.10 or the SMA 20 at $0.95 before initiating positions. This approach would offer better risk-reward ratios and confirmation of support holding.

Aggressive traders could consider the current levels with tight stop-losses below $1.10, targeting the $1.14 resistance for a potential 1.8% gain. The risk-reward becomes less favorable at current levels, but the strong momentum could drive ONDO/USDT higher in the short term.

Position sizing becomes critical given ONDO’s position near resistance. The tokenized securities expansion provides fundamental support, but technical indicators suggest caution at current elevated levels.

Conclusion

ONDO price momentum remains strong following the confirmed bullish pennant breakout, with technical indicators supporting continued upside toward $1.14 resistance over the next 24-48 hours. However, with ONDO’s RSI approaching overbought territory and the token trading above Bollinger Band resistance, traders should expect potential consolidation or minor pullbacks. The key level to watch is $1.14 – a break above could signal further gains, while rejection might trigger profit-taking back toward $1.10 support. Risk management remains essential at these elevated levels despite the overall bullish trend.

Image source: Shutterstock