Ondo (ONDO) crossed above the 50-day moving average (MA) after Ondo Finance and Broadridge, in partnership, launched a solution for third-party tokenized securities. With the token coin crossing above this level, an analyst spotted an opportunity to enter the market.
ONDO crosses above 50-day moving average
ONDO made a massive move on the chart by crossing above the 50-day moving average, at $0.329. The 50-day moving average is considered an important level in the market, as traders often use it to enter or exit their positions. Usually when the price of the token has been under the 50-day MA, traders wait for the token to reach this value. Once it hits this value, they usually sell off and take profits.
As such, this level will have a lot of resistance when the coin reaches this level. Hence, when the coin crosses this level, which has so much resistance, the market considers this a bullish move.
ONDO’s partnership with Broadridge powered the spike
This major event in the chart was driven by Ondo Finance’s partnership with Broadridge.
Just a few weeks ago Ondo Finance announced the first live solution of third-party tokenized U.S. securities operating entirely within the existing regulatory perimeter in the U.S. partnership with Broadridge Financial Solutions Inc. (NYSE: BR) to provide full voting rights for tokenized equity holders.
“Under this model, which closely follows the SEC’s third-party custodial model, the underlying shares never leave the traditional U.S. regulated custody chain. Ondo’s registered transfer agent mints corresponding tokens, backed 1:1 by those shares, which are issued on the Ethereum blockchain and held by regulated custodians. Each token holder will receive the same shareholder rights and protections as shareholders holding through U.S. brokerage accounts,” stated Ondo Finance.
ONDO trades inside a bullish cup and handle; is $0.65 the next target?
With the announcement, the prices, which had been falling since May, all of a sudden started to reverse and reclaimed the 50-day moving average. And when the broader market structure is considered, ONDO is trading inside a cup and handle pattern.
A cup and handle pattern forms when an asset recovers from a rounded correction (the cup) before entering a brief consolidation (the handle). The handle represents the final wave of profit-taking as sellers are gradually absorbed by buyers. A breakout above the handle signals renewed bullish momentum and the potential continuation of the uptrend.
As shown in the chart above, when the prices break out from the handle, there is a high chance that they could reach above $0.65.
Echoing the similar thought, an analyst who goes by the pseudonym mentioned that ONDO could reach $0.20 and above in the short term.
