Ondo Finance crypto price bounced back a week after the network unlocked billions of tokens, diluting its existing investors. The token rose to a high of $1.5545, up from this month’s low of $1.0872. This rebound has brought its valuation to over $4.56 billion.
Why Ondo Token Is Rising
Ondo price is rising a week after conducting its biggest unlock ever. It unlocked over 3 billion tokens bringing the circulating supply to 3.15 billion tokens. These allocations went to private sales, ecosystem growth, and protocol development. Ondo will have three more similar unlocks to release the remaining tokens and end the dilution.
The token rose because of its close relationship with the incoming Donald Trump administration. Trump’s World Liberty Finance has accumulated Ondo tokens worth almost $200k. At the same time, Ondo donated to Donald Trump’s inaugural committee, and the team is participating in Washington celebrations.
Therefore, Ondo price is rising as investors anticipate some favors from the Trump administration. For example, there is a likelihood that a spot Ondo Finance ETF application will be approved by the SEC.
Trump is also contributing indirectly to the Ondo price rally. Some of his policies, like mass deportations, tariffs, and tax cuts will fuel inflation. High inflation means that the Federal Reserve will remain hawkish, leading to high bond yields.
Ondo Finance benefits from high yields because it offers stablecoins that resemble money market funds. The US Dollar Yield (USDY) and the US Treasuries (OUSG) yield 4.35% and 4.22%. These funds, in theory, may see more inflows in a high-interest environment.
Meanwhile, there are signs that smart money investors are buying the coin. Now, 50 smart money players hold Ondo, the highest level on record. These investors are usually more sophisticated and experienced, which is a positive sign.
Ondo Price Forecast
The daily chart shows that the Ondo price bottomed at $1.0872 earlier this month. It moved above the upper side of the falling wedge that has been forming since November last year. A wedge is a highly popular bullish chart pattern.
Ondo Finance also formed a cup and handle pattern, a bullish continuation sign. Therefore, the coin will likely continue rising as bulls initially target the important point at $2.1425, its highest level on December 16.
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