Ondo continues to achieve gains for the fifth consecutive day this week, testing the resistance block for the 50-day exponential moving average and the downward trend line.
Data on the chain shows a steady increase in the total value locked (TVL) for Ondo to $2.92 billion, with tokenization of Franklin Templeton's investment products on Wednesday.
Derivatives data indicate increased trader participation with open interest surpassing $100 million.
Ondo ($ONDO ) continues to rise for the fifth consecutive day, achieving total gains of nearly 12% so far this week. The introduction of Franklin Templeton's financial products worth $1.7 trillion as real-world assets (RWA) on Ondo enhances the total value locked (TVL) for Ondo. Derivatives data show an increase in trader participation based on the double-digit rise in open interest for Ondo futures contracts over the past 24 hours.
The technical outlook for Ondo suggests a moderate bullish bias where a short-term increase in buying pressure could break above the descending trendline extending over four months.
Introduction of tokenized ETFs from Franklin Templeton
Ondo announced the partnership with Franklin Templeton on Wednesday to bring its exchange-traded funds (ETFs) on-chain through tokenization. The on-chain version of Franklin Templeton's ETFs, which manages assets worth over $1.7 trillion, will provide trading 24/7. The total value locked (TVL) on Ondo – which refers to the value of assets tied to the platform – has risen to $2.92 billion, up from $2.70 billion on Wednesday.
Ondo's decentralized finance metrics. Source: DeFiLlama
According to Sandy Cole, Head of Innovation at Franklin Templeton, "The global ETF market is valued at $30 trillion. Even if we capture just 5% of new audiences, we're talking about an additional $1.5 trillion entering the cryptocurrency ecosystem. I believe the number could be much higher than that."
Bullish signals from Ondo derivatives
Derivatives data show an increase of over 17% in open interest for Ondo futures contracts over the past 24 hours, reaching $105.21 million, indicating enhanced trader participation. However, the total liquidation over 24 hours was $648,420, led by long liquidations of $455,470, indicating a larger washout of bullish positions.
Ondo derivatives data. Source: CoinGlass
Despite the washouts, the positive funding rate of 0.0018% reflects a bullish trend in capital flows to Ondo futures contracts.
Technical analysis: Is Ondo ready for a bullish breakout?
$ONDO shows a stable recovery for the fifth consecutive day after a rebound of 3.50% on Monday and holding above the February 9 low of $0.2405. At the time of writing, Ondo is up 3% on Friday, heading towards a descending resistance line near the 50-day exponential moving average at $0.2767.
A critical close above $0.2767 will confirm the breakout, revealing the peak of February 3 at $0.2968, followed by the 100-day exponential moving average at $0.3360.
The Moving Average Convergence Divergence (MACD) line has crossed into positive territory again and is above the signal line on the daily chart, with green bars expanding in the histogram, indicating renewed bullish momentum. The Relative Strength Index (RSI) is also rising to 57, surpassing the midpoint line, reinforcing bullish pressure with additional room to rise before reaching overbought conditions.
Daily chart of ONDO/USDT price.
Looking downward, a bearish close for the day would reaffirm the downward pressure, potentially pushing Ondo down to the February 9 low of $0.2405. If Ondo drops below this level, the decline may extend to the February 6 low of $0.2018.