The Ondo Finance token is rebounding after plunging to a two-month low last week. It has risen for four straight days and moved back to the important point at $1. This rebound has brought its total market cap to over $1.4 billion.
Ondo Finance ecosystem growth
Ondo Finance (ONDO) is one of the top blockchain networks in Decentralized Finance (DeFi) industry. It is a platform that venture capital firms like Pantera and Founders Fund back.
The platform runs two unique assets: US Dollar Yield (USDY) and US Treasuries (OUSG), which provide investors with encouraging returns, unlike other stablecoins like Tether USDT and USD Coin.
The USDY token offers a 5.30% yield, while the OUSG yields 4.86%. These tokens generate yields by investing in short-term US Treasuries, some of the industry’s safest assets. A few months after launch, Ondo Finance’s total assets jumped to over $556 million.
The $ONDO token price has bounced back in the past few days as investors examine Bitcoin’s performance. Bitcoin crashed to below $54,000 last week and has now bounced back to over $58,000. In most cases, altcoins follow the performance of Bitcoin (BTC).
It has also risen as the developers have made several partnerships in a bid to boost its ecosystem. On Wednesday, Ondo Finance launched a partnership with Pyth Network, one of the top oracle networks in the world. Pyth released its USDY/USD price feed to 65 blockchain networks.
Dolomite, a money market and margin trading protocol, has also partnered with the network. This collaboration allows users of the Mantle deployment to conveniently lend and borrow USDY on its platform. Additionally, USDY has been integrated into the Drift Protocol.
Ondo Finance price forecast
The daily chart shows that the Ondo token price peaked at $1.4835 in June and has now moved into a bear market, having dropped by over 32%. It bottomed at $0.8472 last Friday, a notable price that coincided with the lower side of the descending channel.
Meanwhile, ONDO has bounced back and moved to the 38.2% Fibonacci Retracement point. It is also approaching the crucial resistance point at $1.0313, its highest swing on April 15th.
The token also remains below the 25-day Exponential Moving Average (EMA). Therefore, there is a risk that this rebound is part of a dead cat bounce, meaning it could resume the downtrend in the coming days. If this happens, it will retest last week’s low at $0.8472.
A complete reversal will be confirmed if the ONDO price rises above the 25-day moving average and the upper side of the descending channel.
