Ondo [ONDO] has bounced 6.6% from the $0.41 low it formed on Sunday, the 18th of October. Despite the small bounce, Ondo crypto was still down 10% over the past week’s trading.
Compared to Bitcoin’s [BTC] performance of a 2.1% weekly drawdown, it appeared that ONDO bulls displayed relative weakness that could soon turn into a downtrend.
Last week, the altcoin market cap, including Ethereum [ETH] , fell nearly 8% from $1.13 trillion to $1.05 trillion. Bitcoin spot ETFs saw net outflows of $228.4 million from the 12th to the 16th of October.
These factors helped explain the Ondo crypto decline. Can the bulls stage a comeback?
On the 1-day timeframe, the $0.425 level had been a supply zone from June to late September. A breakout above this zone established a bullish market structure for Ondo crypto on this timeframe.
The bullish order block highlighted at the $0.43 area is a place where buyers have to make a stand. A daily session close below $0.404 will flip the daily swing structure bearishly.
Meanwhile, the On-Balance Volume (OBV) moved sideways in October, while the RSI fell, signaling increasing bearish momentum.
Buyers still had support to defend, but momentum was working against them.
The 4-hour internal structure was bearish, evidenced by the price dip below $0.422. The OBV on this timeframe did not show heavy selling pressure, although the momentum was in favor of the sellers, and the RSI has been below neutral 50 for a week.
The $0.404 low must be defended, making it a good place for swing traders to place their stop-loss. Traders can also consider placing an SL slightly lower, in anticipation of a liquidity sweep into the $0.404 low to hunt SL orders.
The risk-to-reward is relatively high for buyers, but they must be clear on the nearby invalidation as well. A Bitcoin turnaround would aid in the Ondo crypto sentiment.
On the other hand, a daily session close below $0.404 should flip swing trader bias bearishly.