Ondo Finance’s token rebounded after falling to a two-month low on Monday as Bitcoin and most altcoins crashed amid concerns of a trade war.
Ondo (ONDO) price jumped to a high of $1.4450, up 60% from its lowest level this week, bringing its market cap to $4.57 billion and its fully diluted valuation to $14.5 billion.
The coin rebounded after the developers launched Ondo Nexus, a technology initiative designed to unlock instant liquidity for third-party issuers of tokenized treasuries. It will leverage OUSG’s instant minting and redemption capabilities, enhancing liquidity and utility for tokenized treasuries.
Ondo has partnered with major U.S. firms, including Franklin Templeton, WisdomTree, Wellington Management, and Fundbridge Capital. Ondo will also involve its existing partners, such as BlackRock and PayPal, in launching Nexus.
Ondo Finance’s ecosystem surged to over $638 million, up from less than $1 million in February last year. Most of these funds are in Ondo US Dollar Yield Token (USDY), while the rest are in Ondo Short-Term US Treasuries Fund.
Ondo has become a major player in the fast-growing real-world asset (RWA) tokenization industry, which is expected to expand significantly in the coming years. Companies such as BlackRock, Apollo Global Management, and Franklin Templeton have all launched tokenized projects. BlackRock CEO Larry Fink has urged the Securities and Exchange Commission to approve the tokenization of stocks and bonds.
This growth has pushed several tokenization cryptocurrencies higher this year. For example, Mantra price has soared by almost 5,000% in the last 12 months, bringing its market cap to over $5 billion.
Ondo price forecast
The daily chart shows that the Ondo token bottomed at $0.9235 on Monday as most cryptocurrencies fell. It has pared back some of those losses and is nearing the key resistance level at $1.4760, the upper side of the cup and handle pattern that formed between June and November last year.
Ondo has also formed a falling wedge pattern, characterized by two converging downward-sloping trendlines. It is one of the most well-known bullish chart patterns. Additionally, Ondo has moved slightly above the bottom of the trading range on the Murrey Math Lines tool.
Therefore, the coin is likely to experience a strong bullish breakout, with the next key level to watch being $2.15, representing an all-time high and 50% above the current price.
