Ondo Crypto Price Forms Bullish Cup-and-Handle Pattern Amid $1 Billion TVL Surge

Key Insights

• Ondo crypto price has formed a cup-and-handle pattern.
• Data shows that the Ondo Global Markets TVL has jumped to over $1 billion.
• The token has a 66% upside from the current level.

Ondo crypto price climbed more than 10% on Friday, extending its recent recovery as activity across the network accelerated.

The token has remained one of the stronger performers in the decentralized finance sector despite broader market weakness. Rising adoption across Ondo’s tokenized asset ecosystem also continued supporting bullish sentiment.

There are signs that Ondo Finance has become one of the fastest-growing networks in the decentralized finance (DeFi) and real-world asset (RWA) tokenization industries.

Data compiled by DeFi Llama shows that Ondo Global Markets has become a popular platform for real-world asset tokenization trading. It allows users to trade and invest in top tokenized stocks like Microsoft, Apple, and NVIDIA, and pay a tiny fee. Also, people can trade these assets for 24 hours.

The total value locked in the platform crossed the $1 billion mark recently, and the growth is accelerating. It now has $1.05 billion in assets in its platform.

At the same time, the volume on its platform continues to grow. It handled trades worth over $2.7 billion in the last quarter, and has now processed transactions worth $1.73 billion in the current one. This means that, if the trend continues, its quarterly volume will hit a record high.

More data shows that other parts of Ondo’s business are growing. For example, the total value locked in its platform has jumped to over $3.8 billion, a few points below its record high.

This growth is happening because of the rising demand for its RWA funds. For example, the Ondo US Dollar Yield Token (USDY) has accumulated over $2.14 billion in assets, with investors interested in its 3.55% yield.

The same is happening with its Ondo Short-Term US Treasuries Fund (OUSG), which has accumulated over $552 million in assets and offers a 3.44% annual return.

Ondo has also expanded its business in the lending industry through Flux. Data shows that its TVL has continued growing this year.

Consequently, Ondo has become one of the most consistent chains in terms of fees it generates. It made $13.26 million in the first quarter and has already made over $8.42 million in the current one. In contrast, other large players in the DeFi industry like Aave, Compound, Uniswap, and JustLend have seen their fees drop during the crypto winter.

Therefore, these fundamentals explain why the network’s demand has jumped. For example, according to CoinMarketCap, the 24-hour volume has risen by 50% to over $412 million. It was the most actively traded DeFi coin today, May 22.

The same trend is happening in the futures market, where the volume jumped to over $864 million. Its open interest has risen to over $235 millin, the highest level in months.

The daily chart shows that the ONDO token price has been in a bullish trend in the past few weeks. This trend started earlier this month when it bottomed at $0.266.

A closer look at this chart shows that it has successfully crossed the 200-day moving average, confirming the bullish outlook. At the same time, it has formed a cup-and-handle pattern whose upper side is at $0.4730. It is now in the process of completing the handle section.

The upper boundary of the formation sits near $0.4730, while the current pullback resembles the handle section of the pattern.

The distance between the bottom of the cup and the resistance area measures roughly 66%. Applying the same percentage above the breakout zone produces a projected target near $0.7440.

If momentum remains intact, ONDO could continue pushing higher toward that level in the coming weeks.

However, a breakdown below the handle support near $0.3298 would weaken the bullish setup and expose the token to renewed downside pressure.

The post Ondo Crypto Price Forms Extremely Bullish Pattern as RWA Growth Surges appeared first on The Market Periodical.