ONDO Crypto Loses Key Support Despite Surge in Institutional Tokenization

Ondo Finance (ONDO) was slowly emerging as the leading altcoin in the tokenizing real-world assets (RWA) sector. The sector was expanding at an accelerating rate. Layer 1s, such as Ethereum (ETH), Chainlink (LINK), and Stellar Lumens (XLM), are also fighting for a share.

ONDO was first launched on the Ethereum blockchain but has since expanded its operations. It appeared among the top cryptos that were promising in this sector, with the president supporting it through an interview with analyst Katie Perry.

Although there were positives to be found in the overall surroundings of ONDO crypto, the price action faced the same fate as the broader market.

Top Promising RWA Crypto Projects

According to analysis done by CryptoRank, Ondo led the top projects in the RWA sector with a promising fully diluted value (FDV) of $21.3 billion. ONDO crypto was trading with a market cap of $6 billion. It aims to achieve more than 3x from the current valuation.

Others were Stable (STBL), Avantis (AVNT), Reserve Rights (RSR), and Plume Network (PLUME), rounding out the top five. Surprisingly, the second in the list had a target that was equivalent to the current valuation of ONDO.

The announcement further stressed the leading position of ONDO crypto in this sector.

As the category gained more traction among institutions, it demonstrated a shift in dynamics. The president of Ondo Finance, Ian De Bode, expressed this in an interview with a blockchain enthusiast.

Ondo Finance President Speaks on Tokenization, Volume Follows

During an interview with Katie Perry, Ondo Finance president described the current period as one of the busiest ever to tokenize a business in the United States. This was due to the growing interest of large and traditional finance (TradFi) institutions in moving to on-chain infrastructure.

He pointed out that companies such as Franklin Templeton, BlackRock, WisdomTree, and Fidelity were either considering or expanding their blockchain projects. In most instances, they collaborated with companies like Ondo Finance to connect traditional markets with DeFi systems.

De Bode also included pilots in JP Morgan and continued efforts by Mastercard, PayPal, and Stripe. This demonstrated how fast the old players in the payment and banking industry were approaching the tokenization arena.

He noted that the industry was now required to find partners who know both parties. That was essentially to establish liquidity and facilitate compliant adoption.

The increasing tokenization led to a new peak in cumulative volume. According to DefiLlama data, ONDO crypto surpassed the $147 billion mark, complementing the views of Ian De Bode. This effectively refutes the lack of data to support the president’s claims.

However, ONDO price action failed to reflect these fundamentals and on-chain strengths.

ONDO Price Prediction: Will ONDO Crypto Recover?

From a numerical perspective, ONDO crypto was in an extended downtrend. It was trading below a descending trendline resistance on the daily price chart.

Notably, ONDO price had broken below a critical support level around the $0.70 zone. This clearly explained the state of the crypto structurally.

Recovery was possible only if the price reclaimed both the horizontal and slanting resistance levels as supports. However, this was a real challenge now that the entire crypto market was heading south.

In the meantime, the ONDO crypto price remained bearish, with no near-term technical indications of a recovery. Traders needed to stay observant for whale activity and, most importantly, technical alignment.