ONDO Whales Withdraw $14 Million: Is a Market Reversal on the Horizon?

In recent developments, significant ONDO withdrawals are altering supply dynamics without causing drastic price reactions. A newly created wallet recently withdrew approximately 41.87 million ONDO, valued at around $14.34 million, from Coinbase over multiple transactions. Notably, these tokens have not returned to centralized exchanges, suggesting an intention to hold, rather than an immediate need for liquidity.

Key Takeaways

Major Withdrawals: Recently, 41.87 million ONDO was withdrawn, indicating a strategic position by long-term holders.
Market Dynamics: These withdrawals reduce available supply, making it harder for sellers to exert downward pressure.
Price Trends: ONDO trades within a descending channel, facing resistance around $0.38 but showing defensive buying near $0.33.
Market Sentiment: Liquidations favor short sellers, further hinting at a potential market reversal.

ONDO whales withdraw $14 mln - Is the market preparing for a reversal?

Assessment of ONDO's Price Action

Currently, ONDO's price follows a descending channel that has influenced market direction since late 2025. The upper boundary has consistently repelled advances, indicating strong overhead resistance, while the lower boundary continuously draws buyers, preventing significant price declines. Attempts to push prices higher have faltered around $0.38, confirming seller presence, whereas price dips have struggled to fall below $0.33, indicating ongoing defensive demand. This indicates a tightening price range rather than a breakdown, and the slight flattening of the channel slope implies that downside momentum is lessening. As long as the price does not convincingly challenge the upper channel boundary, any price rallies may remain corrective rather than indicative of a trend reversal.

ONDO price action analysis Source: TradingView

Momentum indicators show uncertainty rather than fatigue. The daily Relative Strength Index (RSI) is hovering around 35, remaining in the oversold zone. Despite recent attempts at recovery, sellers have curtailed upward momentum, keeping RSI oscillating rather than trending upwards. Importantly, the RSI has avoided remaining below the 30 mark, indicating that sellers may be exercising restraint. For a stronger recovery narrative, the RSI needs to reclaim the 45 to 50 range.

Market Behavior: Buyer Dominance and Pressure Absorption

The cumulative volume delta (CVD) in the spot market indicates strong buyer activity, particularly when observing a 90-day view, showing that buyers are persistently lifting offers instead of waiting for lower prices. This contrasts sharply with earlier periods of selling pressure. While price hasn't risen in conjunction with this buyer aggression, the market appears to be absorbing sell pressure rather than chasing rapid momentum. As sellers unload their positions into demand, the overall supply continues to tighten, making it increasingly difficult for downside moves to pick up speed, even in the absence of immediate upward momentum.

Ondo Spot Taker CVD Source: CryptoQuant

Short Liquidations Dominate as Pressure Eases

Recent liquidation data reveals that shorts have suffered considerably more than longs amidst market volatility. Total liquidations hit approximately $43,000, with shorts accounting for a striking $43.02K, compared to only $405 in long liquidations. Notably, Binance recorded excesses of over $42K in short liquidations. This indicates a crowded bearish sentiment before price stabilization. As shorts unwind their positions, forced buybacks have served to counteract downward pressure without causing greater price drops. Nevertheless, the overall liquidation sizes remain modest, suggesting a low level of leverage in the market, allowing bearish pressures to ease without a collapse.

ONDO long vs short liquidations Source: CoinGlass

Short-Side Liquidity Builds Above Current Price Levels

The liquidation map for ONDO highlights significant short positions accumulating just above current price levels, specifically between $0.35 and $0.37. This clustering poses a risk to short sellers; any upward movement into this zone might compel them to cover their positions quickly. Conversely, there is comparatively less liquidity below $0.33, reducing the risk of a rapid sell-off. This structural imbalance suggests that short-term risks are skewed against shorts while remaining dormant until the price approaches these pivotal levels.

Source: CoinGlass

In summary, ONDO is currently in a phase of preparation rather than one of weakness. The tightening of supply, alongside the unwinding of bearish leverage, indicates that buyers are absorbing selling pressure. However, the market structure still limits upward movement. Should the price approach resistance levels with increased participation, any bullish reactions might gain traction swiftly. Otherwise, continued consolidation could occur, delaying resolution but strengthening the market's eventual directional movement.

Key Takeaways

Assessment of ONDO's Price Action

Market Behavior: Buyer Dominance and Pressure Absorption

Short Liquidations Dominate as Pressure Eases

Short-Side Liquidity Builds Above Current Price Levels

Final Thoughts