ONDO Price Eyes $2.60 as Funding Rates Hit Rare -63.73%

ONDO’s funding rate sits at an extreme -63.73%, signaling a rare bullish opportunity.

Falling channel breakout could target $2.32 and $2.60, marking a continuation of its bullish trend.

Critical support levels lie at $1.19 and the 200 EMA is near $1.00, holding the key to short-term price stability.

With Bitcoin crossing above the $100,000 mark, the total crypto market cap excluding Bitcoin peaked at $1.48 trillion. With the 7.32% surge in the altcoin market, crypto market sentiments have significantly improved.

Amid such recovery, Ondo Finance struggles to make a bullish impact. However, the changing landscape could revive the bullish rally for a parabolic rise.

ONDO Price Eyes Channel Breakout

Over the past 24 hours, the Ondo price has increased by just 2.6% with a market cap of $1.66 billion. In the daily chart, the Ondo price action reveals a falling channel pattern, holding the price trend.

Currently, Ondo price action reveals a crucial horizontal support at the $1.19 level. This drives the short-term sideways trend within the channel pattern.

ONDO Price Chart

With an intraday drop of 6.68%, the sellers have undermined the 8.06% surge last night. This limits the 24-hour growth and warns of a bearish continuation within the falling channel.

However, the dynamic average line of the 200-day EMA is likely to act as a bullish cushion. Furthermore, the daily RSI line reveals a minor bullish divergence, increasing the breakout chances.

Analyst Promotes Bullish Positions in Ondo Finance

As the Ondo token price action reveals a bullish setup, the recent tweet from Ali Martinez supports the bullish sentiment. In his recent X post, Ali Martinez highlights the negative funding rate in the Ondo derivatives market.

$ONDO currently has a funding rate of over -60%, which means exchanges are literally paying you to go long on it. That’s a rare setup and one worth taking note of. pic.twitter.com/XzMxhlxa54

— Ali (@ali_charts) January 16, 2025

currently has a funding rate of over -60%, which means exchanges are literally paying you to go long on it. That’s a rare setup and one worth taking note of.

— Ali (@ali_charts)

The funding rate of -63.73% t reflects an extremely rare setup where exchanges are paying traders to hold bullish positions. While Ali Martinez judges this situation as a risk worth taking, traders avoiding the high leverage might be better off.

ONDO Price Target Levels

Based on the broader price action, the current falling channel pattern acts as a pullback of the November and December bullish rally. Hence, a potential breakout of the falling channel will prolong the bullish journey.

Using the trend-based Fibonacci levels, the channel breakout will likely re-challenge the 61.80% Fibonacci level near the $2.00 psychological mark. Beyond this, the price targets are at $2.32 and $2.60.

On the flip side, the 200 EMA near the $1.00 psychological mark and the $0.80 mark are crucial support levels.

Conclusion

The rare negative funding rate offers a bullish opportunity but comes with risks, especially for high-leverage traders. However, the falling channel pattern and RSI divergence support a potential breakout. In a nutshell, if ONDO bounces off from the $1.19 support and breaks the channel, targets at $2.32 and $2.60 remain within reach.