The cryptocurrency market has seen an increase in whale activity, with major platforms like Binance, Upbit and Wintermute significantly increasing their holdings of Ondo (ONDO). Despite a slight decline last week, ONDO observed a notable reversal, registering a rise of 3.64% on the daily chart and a remarkable increase of 49.42% over the past month. As whale accumulation intensifies and spot traders reduce available supply, ONDO appears well positioned for potential upside pressure.
Whale Accumulation Fuels ONDO Price Optimism
Whale investors, or large holders, are often considered key indicators of future market trends. According to an analyst on Twitter, Jacky, major exchanges have discreetly increased their positions in ONDO. Upbit, one of the largest cryptocurrency exchanges in South Korea, has notably increased its holdings of ONDO by over 200% in the last five months, now holding 1.86% of the total supply of the token.
Jacky highlighted: “Upbit grew from 50 million ONDO to 185 million ONDO, representing 1.86% of the total supply. »Similarly, Binance also increased its position from 594,000 ONDO to 631,000 ONDO in just a few days. This strong accumulation suggests that large players are anticipating a potential price rise, as whale activity often precedes market rallies.
To reinforce the bullish sentiment, Wintermute, a key player in the cryptocurrency market, also joined the accumulation frenzy, signaling increased confidence in ONDO’s future performance. As these whales continue to add to their positions, the likelihood of upward price pressure increases, which could drive the value of ONDO higher.
A Supply Shortage Could Drive Up the Price of ONDO
The increasing accumulation by whales coincides with a tightening of supply of ONDO on exchanges. According to Coinglass, the net trade flow for ONDO has become negative, meaning that more ONDO is being withdrawn from exchanges than is being deposited. Last week, approximately $4.10 million worth of ONDO was transferred to private wallets, reducing the amount available for trading.
This tight supply could contribute to supply pressure, where reduced availability of ONDO, combined with increasing demand, pushes prices higher. Growing interest from whales and declining circulating supply on exchanges suggest that ONDO could soon experience a significant upward price movement, if this trend continues.
Short Sellers Risk Losses as Bullish Sentiment Intensifies
Although ONDO price has shown significant gains recently, the market has also seen some short-term fluctuations. Over the past 24 hours, approximately $297,180 in long positions were liquidated, as the market briefly shifted to a bearish bias. However, this does not appear to have affected overall market sentiment, with open interest — which tracks the number of active, unsettled derivative contracts — falling while short contracts are increasing.
The increase in short positions suggests that some traders are betting against the price of ONDO. However, with whales accumulating and overall market sentiment tilting higher, these traders could face significant losses if the bullish momentum continues.
What’s next for ONDO?
Given growing interest from whale investors and tightening supply, ONDO could be poised to continue its rise. The combination of increasing demand and reduced supply on exchanges could lead to a sharp increase in prices. As whale investors continue to strengthen their positions, the chances of a sharp price rise increase, which could propel ONDO to new highs.
For derivatives traders, especially those holding short positions, the bullish sentiment surrounding ONDO could soon translate into mounting losses. If the uptrend continues, it could force these traders to close their positions, further accelerating the price movement.
Investors following ONDO should keep an eye on the behavior of major players, ongoing supply dynamics, and broader market trends, as these factors will likely determine whether ONDO can maintain its bullish momentum and reach new price milestones .
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