Ondo Finance Witnesses Surge in Holder Numbers, But Overvaluation Concerns Arise
In the past week, the ONDO price experienced a significant increase from $0.40 to $0.90, resulting in a doubling of its holder base in just one month. While this growth is impressive, it has also raised concerns about the potential overvaluation of the coin. However, technical analysis suggests that ONDO may still have room to establish new all-time highs, although some corrections may occur before that.
The Soaring Number of ONDO Finance Holders
During the initial months of 2024, ONDO saw a steady increase in its investor base, with an average daily addition of 100 to 300 new holders. By February 26, the holder count had reached 4,872. However, the growth trajectory took a dramatic turn in late March when the number of ONDO holders surged past the 10,000 mark. This represents more than a doubling of the investor community within just one month and aligns closely with the price appreciation of ONDO.
ONDO MVRV Ratio (Z Score) Also Rises
The ONDO MVRV Ratio (Z Score) has also caught attention as it rose sharply from 1.39 to 3.57 between March 19 and March 25. The MVRV Z Score compares an asset’s market value to its realized value and helps identify times when an asset is over or undervalued. In this case, a Z Score of 3.57 suggests that ONDO may be overvalued and could potentially experience a market correction.
ONDO Price Prediction: What’s Next?
Despite the recent surge in price and holder numbers, ONDO’s 4-hour price chart currently shows a bullish trend. Short-term EMA lines have crossed above long-term lines, indicating an upward price trend. However, the overvaluation concerns and the recent price surge may lead to a strong correction in the near future. ONDO could correct to $0.84 before attempting new surges, but if the uptrend continues, it could reach new all-time highs and potentially surpass $1.
Hot Take: Proceed with Caution
The significant increase in ONDO’s holder numbers and price has undoubtedly attracted attention. However, it is important for crypto investors to approach this situation with caution due to the potential overvaluation of the coin. While technical analysis suggests a bullish outlook, there is still a possibility of corrections in the market. It is crucial for investors to stay informed and make well-informed decisions based on thorough research and analysis.
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