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Ondo (ONDO) Price Soars 100% in a Week: More Upside Expected?

3 mins
Updated by Ryan James
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In Brief

  • Ondo Finance (ONDO) price went from $0.40 to $0.90 in the last 7 days, doubling the number of holders in just one month.
  • Its MVRV Z Score is currently at 3.63, which raises a red flag about the overvaluation of the coin.
  • EMA Lines are still extremely bullish for ONDO, with space to new all-time highs.
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In the past week, the ONDO price witnessed a significant jump from $0.40 to $0.90, a movement that doubled its holder base in merely a month.

This dramatic increase has pushed its Market Value to Realized Value (MVRV) Z Score of 3.63, suggesting a cautionary signal regarding the coin’s potential overvaluation. Despite these concerns, the Exponential Moving Average (EMA) lines for Ondo Finance (ONDO) project a highly bullish outlook. The technical analysis indicates there’s room for the cryptocurrency to establish new all-time highs. However, some corrections may take place before that.

Ondo Finance Number Of Holders Soars

During the initial months of 2024, ONDO experienced a steady increase in its investor base, with an average daily addition of 100 to 300 new holders. This steady progression was evident as the holder count reached 4,872 on February 26. Yet, the growth trajectory took a dramatic turn over the last week of March, witnessing a sharp rise. By March 25, ONDO holders had surged past the 10,000 mark, marking a significant milestone.

ONDO Total Amount Of Holders.
ONDO Total Amount Of Holders. Source: Santiment.

This remarkable increase in holders represents more than a doubling of the investor community within just one month. This upsurge aligns closely with ONDO price appreciation, which saw a notable escalation from $0.40 on March 19 to an impressive $0.95 by March 25 – translating to a 137.5% increase in just six days.

Should this growth momentum be sustained, it could very well cement the faith of new investors in ONDO’s potential, potentially ushering in even higher price peaks shortly. Such rapid expansion reflects investor confidence and could also act as a catalyst for further elevating the ONDO price.

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ONDO MVRV Ratio (Z Score) Also Increases

The ONDO MVRV Ratio (Z Score) has caught attention, rising sharply from 1.39 to 3.57. This rise occurred between March 19 and March 25. The MVRV Z Score gauges an asset’s fair value, comparing the market to realized value. It reflects the current price against the average investor’s paid price. The Z Score shows deviations from the asset’s typical MVRV. It helps pinpoint times when an asset is unusually high or low valued.

ONDO MVRV Z Score.
ONDO MVRV Z Score. Source: Santiment.

When the MVRV Z Score escalates sharply, as observed with ONDO, it signals that the price is potentially overextended compared to its realized value, suggesting that the asset might be overvalued. Such a condition often precedes a market correction, where the price adjusts downward as the market seeks to reconcile the asset’s speculative market price with its underlying economic value.

In ONDO’s case, the rapid ascent to a 3.57 Z Score could be interpreted as a strong correction signal. Historically, high MVRV Z Scores have been associated with market tops and subsequent price declines as investors begin to take profits, leading to increased supply and pressure on the price to normalize.

ONDO Price Prediction: What’s Next?

ONDO’s 4-hour price chart currently shows a bullish trend, despite the recent price surge. Short-term EMA lines recently crossed above long-term lines. Exponential Moving Averages (EMAs) are indicators used in technical analysis that give more weight to recent price data, making them more responsive to new market information compared to Simple Moving Averages (SMAs).

ONDO 4-Hour Price Chart.
ONDO 4-Hour Price Chart. Source: TradingView.

Typically, traders interpret short-term EMA lines crossing above long-term EMA lines as a ‘golden cross,’ a bullish signal indicating an upward price trend. This crossover suggests that recent price action is bullish compared to past trends, potentially attracting more buyers into the market.

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Although EMA lines are currently extremely bullish for ONDO, its MVRV Z Score and this recent price surge could set the stage for a strong correction soon. ONDO could correct to $0.84 before trying new surges. However, if the uptrend continues, it could reach new all-time highs, surpassing its previous $0.95 record and potentially reaching $1.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Tiago Amaral
Marketing professional turned coder, passionate about code, data, crypto, and writing. I hold a Marketing and Advertising degree and a Disruptive Strategy certification from Harvard Business School. I love querying blockchain data and discovering insights hidden in data.
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