Ondo Finance Funding Rate Signals Greed Among Investors – Sign Of Strength?

Ondo Finance is emerging as a key player in real-world asset tokenization, positioning itself as one of the altcoin contenders likely to shine in this bull cycle. Despite its strong fundamentals, the start of 2025 has been challenging for ONDO, with the token experiencing a massive selloff that led to a 33% drop in value since January 4. This bearish price action has raised questions among some investors, but optimism is beginning to build.

Top crypto analyst Ali Martinez recently shared compelling data that may indicate a turnaround for ONDO. According to Martinez, ONDO’s funding rate has dropped to -60%, a rare phenomenon that signals exchanges are paying traders to go long on the token. Such an environment often reflects a highly bearish sentiment in the short term, which can lead to sharp reversals as market conditions normalize.

Ondo Finance could present an intriguing opportunity for investors looking to capitalize on real-world asset tokenization’s growing role in the crypto space. As metrics suggest a potential rebound, all eyes are on ONDO to see if it can recover and perform as expected in this bull cycle.

Greedy Bears Holding The Price

Ondo Finance has cemented its position as a standout project in the real-world asset (RWA) sector, attracting significant investor attention during the November 2024 post-election rally. During this period, $ONDO surged by over 260% in just weeks, showcasing its ability to generate massive returns in favorable market conditions. Despite recent price declines, Ondo remains a highly attractive altcoin due to its strong fundamentals and leadership in the RWA space.

Top analyst Ali Martinez recently shared intriguing data on X that sheds light on the current state of ONDO. According to Martinez, the token’s funding rate has reached -60%. This means exchanges are effectively paying traders to take long positions on ONDO, creating a unique opportunity.

Such extreme funding rates typically indicate heightened selling pressure, yet the price hasn’t collapsed under the weight of bearish sentiment. This dynamic often points to underlying strength and the potential for a sharp reversal.

This situation could signal overconfidence among short-sellers who are aggressively betting against ONDO. If buying pressure resumes and overwhelms the shorts, it could lead to a squeeze, propelling the price higher. For investors seeking opportunities in the altcoin market, Ondo Finance’s current setup offers a compelling mix of risk and reward.

Navigating Volatility Amid Bearish Sentiment

Ondo Finance (ONDO) is currently trading at $1.20, reflecting a volatile price trajectory over recent days. The token has experienced sharp movements, dropping as low as $1.09 before bouncing to a local high of $1.30. Despite these fluctuations, bears appear to maintain control, overshadowing the broader market recovery.

For bulls to regain momentum and establish a reversal, reclaiming the $1.35 mark is crucial. This level serves as a short-term resistance point that could signal renewed buying interest if surpassed. Beyond that, the $1.50 level stands as the next significant target, potentially marking a transition into a bullish trend if achieved and held as support.

Conversely, a failure to maintain the $1.20 level could exacerbate bearish sentiment, putting additional pressure on the price. A sustained breakdown below this level might open the door for further declines, testing lower demand zones and discouraging investor confidence.

While ONDO’s fundamentals and market potential remain strong, its short-term price action suggests a cautious approach. Bulls need to act decisively to reclaim key levels and shift the narrative toward recovery, while bears continue to leverage market uncertainty to keep the token under pressure.

Featured image from Dall-E, chart from TradingView