Ondo (ONDO), a digital asset, is gearing up for a significant token unlocking event that could potentially impact its price in the market. Scheduled for January 18th, 2025, a whopping $3 billion worth of ONDO tokens will be unlocked, representing 135% of the circulating supply. Out of this total, 80% will be allocated towards ecosystem growth and protocol development, while the remaining 20% will be reserved for investors.
As of now, ONDO is currently trading at $1.43, experiencing an 11.68% decline over the past 24 hours. With a market capitalization of $2 billion and a trading volume of $498 million, the cryptocurrency has witnessed a surge of 127% in trading volume. Despite this, it is down by 25.12% from its all-time high of $1.93 reached earlier in the month.
There are concerns around the potential impact of the token unlocking event on the price of ONDO. Early backers and initial investors who entered the project during the series A funding round at $0.02 have seen substantial profits, with some making gains as high as 80x. The unlocking of 322 million ONDO tokens, equivalent to $500 million, could potentially lead to a price decline for the cryptocurrency.
The Relative Strength Index (RSI) for ONDO currently stands at 58.61, indicating that bulls are in control of the altcoin’s price action. This suggests that a correction may be imminent. However, the MACD indicator is on the verge of a bearish divergence, which, if realized, could result in another price crash for ONDO. Investors are advised to exercise caution and monitor the situation closely.
In conclusion, the token unlocking event for ONDO scheduled for January 18th has the potential to impact the price of the digital asset. With $3 billion worth of ONDO tokens set to hit the market, investors are advised to stay informed and exercise caution. While the RSI suggests a possible correction, the looming bearish divergence on the MACD indicator raises concerns about a potential price crash. It is essential for investors to monitor the situation closely and make informed decisions to navigate the market volatility effectively.
