Massive Forced Liquidation of Long Positions! Indicators Warn of ONDO's Endless Plunge!

▲ ONDO / Source: X ©

ONDO, a real-world asset (RWA) based cryptocurrency, is reeling from a severe deterioration in investor sentiment in the derivatives market and a massive cascade of long position liquidations, facing the worst crisis of a key support level collapse.

According to investment media FXStreet on April 8 (local time), ONDO plummeted by about 5% from its 50-day exponential moving average (EMA) of $0.2700 the previous day and is currently precariously trading around $0.2500. As market skepticism surrounding the US-Iran ceasefire agreement weighs down overall virtual asset investor sentiment, ONDO, which has been leading the real-world asset tokenization theme, is also being pushed by strong selling pressure in the spot market, further increasing the risk of additional decline.

Indicators in the leverage market strongly suggest further price deviation for ONDO. According to CoinGlass data, out of a total of $99,730 in forced liquidations in the ONDO futures market over the past 24 hours, an overwhelming $93,410 was concentrated in long positions. As a result, open interest shrank by 6% to $81.84 million during the same period, demonstrating a swift exit by market participants. Furthermore, the funding rate dropped to -0.0007%, and the buy-to-sell ratio also recorded 0.9342, confirming a clear bearish bias among traders across various indicators.

From a technical analysis perspective, ONDO's downward pressure is also clear. Above ONDO's current price, the 100-day EMA at $0.3186 and the 200-day EMA at $0.4420 form thick resistance walls, solidifying a robust bearish structure. The daily chart's Relative Strength Index (RSI) remains at 44, well below the midpoint of 50, and the Moving Average Convergence Divergence (MACD) also records negative values below the 0 line, suggesting dominant selling pressure rather than room for a short-term rebound.

If ONDO attempts a turnaround, the primary resistance level will be at $0.2700, where the 50-day EMA is located. Even if it breaks through this, $0.2968 is expected to act as a secondary ceiling, limiting any rally.

Conversely, if the downtrend does not stop, the lows of February 9th and 6th, at $0.2405 and $0.2018 respectively, will serve as ONDO's key defense lines. If market anxiety reaches its peak and the psychological threshold of $0.2000 is also breached, ONDO's downside risk could uncontrollably expand, leading to a deep recession.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*