ONDO Traders Boost Leverage Bets Amid Price Recovery

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ONDO
$0.40329-0.18%
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ONDO trading volume climbed sharply as the token rose from $0.37 to $0.41. Futures transaction volume hit $285 million, up 54% from the prior period. Spot transaction volume stood at $64.6 million. The gap between futures and spot trading volume shows increased leveraged activity.

Ondo Finance [ONDO] is on the verge of clearing all July losses. The altcoin rebounded from a $0.37 slip, successfully held $0.4, and touched a local high of $0.41.

As of this writing, ONDO was trading around $0.406, after slightly rising by 5.6% on the daily charts. Over the same period, the altcoin’s trading volume surged by 55% to $123 million, indicating growing market participation.

ONDO Futures outpaces Spot amid high-risk appetite

ONDO’s price hike, although triggered by a shift in the broader market sentiment, has also seen traders show greater demand for leveraged bets. Trader Sarosh noted that ONDO’s Futures activity remains larger than zSpot. This suggests that traders are willing to take leveraged exposure.

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CoinGlass data shows this gap in the market. The altcoin’s ONDO Futures Volume climbed 54% to $285 million, while the Spot volume rose by 67% to $64.6 million.

Ondo futures v spot volume
Source: CoinGlass

This marks a $218 million gap between Futures and Spot, indicating that the ONDO market is experiencing a high-risk appetite.

In this light, traders have deployed significant capital into opening new positions. In fact, the altcoin’s derivatives volume surged 59% to $288 million while Open Interest rose 6% to $204 million.

ONDO Derivatives volume
Source: CoinGlass

The rising volume and OI validate our earlier observations of intense demand for leveraged positions. Over the past day, for example, the altcoin’s Spot volume dropped into the negative zone after holding positive for two days.

ONDO spot netflow
Source: CoinGlass

At press time, Spot netflow dropped to -$929k, implying that volume is mostly buyer-dominated.

What’s next for the altcoin?

ONDO is currently experiencing strong market demand, with traders exhibiting high-risk appetite. As a result, the altcoin’s Relative Strength Index (RSI) jumped to 63, suggesting strong buying pressure.

The ADX-DI indicator further validates these market conditions. The positive index rose to 34 while the ADX climbed to 25.

ONDO RSI & ADX
Source: TradingView

With ADX and +DI rising in tandem, it showed stronger upward momentum and the likelihood of the trend’s continuation.

Therefore, if demand, especially on the Futures, continues to rise while Spot also rises to keep up, ONDO will make more gains.

In doing so, the altcoin will target to flip the $0.45 resistance. To keep this bullish outlook, ONDO needs a daily close above $0.4, and failure to do so will see another retest of the $0.35 support.

Final Summary

  • ONDO rebounded from a $0.37 slip, successfully held $0.4, and touched a local high of $0.41.
  • Traders have shown a high-risk appetite, with Futures volume at $285 million, while the Spot volume lags at $64 million.
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