Ondo Finance token surged to a record high during the weekend as its demand among cryptocurrencies soared. The token jumped to a high of $1.0415, which was over 430% above its lowest point this year, giving it a market cap of over $1.3 billion.
Ethereum whale scoops Ondo
The main catalyst for the recent Ondo Finance token surge is that Bitcoin (BTC) has rebounded to over $65,000 in the past few days. In most cases, altcoins like Ondo, Solana, and Ethereum do well when Bitcoin is in a strong uptrend.
Ondo also jumped amid renewed demand from investors. A good example of this happened last Friday when an Ethereum whale withdrew tokens worth over $5.7 million from Gemini, a leading American exchange.
According to Lookonchain, the whale then bought ONDO tokens worth about $6 million. That could be a sign that the whale has more information than most crypto traders and investors. It could also be that the whale is one of its insiders or venture capital investors.
Data by CoinGecko confirms that Ondo Finance’s volume has been rising recently. The token had a volume of over $266 million in the past 24 hours and $253 million on Saturday. These are significant sums since it was averaging less than $150 million.
The latest whale investment happened as demand for Ondo Finance continued rising. Data by DeFi Llama shows that the network now has over $433 million in assets, a record high. Most of these assets are in its US Dollar Yield (USDY) token, which generates an APY of 5.20%. The remainder is in US Treasuries (OUSG), which has $184 million with an APY of 4.96%.
Ondo Finance has become one of the leading players in the tokenization industry, allowing investors to generate yield by investing in liquid funds by PIMCO and Blackrock. Analysts believe that tokenization will be a multi-billion-dollar industry in the next few years.
Ondo Finance price forecast
Turning to the daily chart, we see that the token bottomed at $0.6175 on April 14th. It then rebounded and moved to the crucial resistance level at $1.0415, over 50% from its lowest point in April.
Ondo has remained above the 50-day and 25-day Exponential Moving Averages, meaning that bulls are in control. However, it has also formed a triple-top pattern whose neckline is at $0.6175. In most cases, this is one of the most popular bearish signs in the market.
Therefore, there is a likelihood that the Ondo token price will go through turbulence in the coming days. More upside will be confirmed if the token jumps above the triple-top pattern at $1.0415.
