Ondo Price Could Surge 110% as TVL Reaches Key Milestone

Ondo Finance, a prominent player in the space of real-world asset tokenization, has faced a difficult market in recent months, seeing a significant decline in its price. Since reaching its high in November 2024, Ondo’s price has dropped by more than 45%. However, recent developments are sparking renewed optimism in the project. As of Thursday, Ondo was trading at $1.60, reflecting a notable 30% increase from its lowest point this year. This price movement, combined with technical and fundamental indicators, suggests a potential rebound in the weeks to come.

One of the key factors supporting this positive outlook is the continued growth of Ondo Finance’s ecosystem. According to DeFi Llama, the total value locked (TVL) in Ondo’s ecosystem has now surpassed $1 billion for the first time, marking a substantial increase from $541 million at the start of the year. This surge in TVL is driven by two of Ondo’s primary tokenized assets: the Ondo Short-Term US Treasuries Fund (OUSG) and the Ondo US Dollar Yield Token (USDY). As of now, USDY holds over $589 million in assets, while OUSG is managing $419 million. Both tokens provide daily yield generation through investments in U.S. Treasury Bills, with USDY offering an annual percentage yield (APY) of 4.35%, and OUSG yielding 4.03%. This yield structure makes Ondo’s ecosystem attractive to investors, offering a relatively stable and profitable avenue for engagement in the decentralized finance (DeFi) space.

In addition to the ecosystem growth, Ondo’s price may also be influenced by external factors, particularly investments from influential entities. Notably, Donald Trump’s World Liberty Financial (WLFI) now holds 342,000 ONDO tokens, valued at over $400,000. This investment is noteworthy, given the speculation that Ondo, as a token tied to Trump’s inauguration committee, may be considered for inclusion in the U.S. strategic crypto reserves. While this is still speculative, it has fueled discussions about the potential implications for Ondo’s price and long-term viability.

From a technical analysis standpoint, the outlook for Ondo’s price is increasingly promising. The daily chart shows that the token has been in a strong downward trend for several months, mirroring the broader market decline. However, there are signs of a potential reversal. Ondo has formed a falling wedge pattern, which is typically viewed as a bullish technical signal, suggesting that the price could break out to the upside once the two converging trendlines near their confluence. Additionally, a cup-and-handle pattern has also formed, which is another technical indicator of a continuation pattern. The upper side of this cup is at $1.48, and the depth of the cup is 65%. If Ondo’s price breaks out from this pattern, analysts predict a price target of $2.46, a potential increase of 113% from its current level of $1.60.

While the technical indicators are bullish, it’s important to remember that broader market conditions, as well as any developments related to Ondo’s potential inclusion in the U.S. strategic crypto reserves, will play a critical role in determining the trajectory of the token’s price. If the rumors about Ondo’s role in Trump’s strategic crypto reserve are confirmed, it could lead to a significant surge in demand and price. Similarly, continued growth in the TVL of Ondo’s ecosystem, along with the success of its tokenized assets like USDY and OUSG, could provide a strong foundation for the token’s recovery and growth.

In conclusion, while Ondo Finance has faced challenges in recent months, its strong ecosystem growth, the appeal of its tokenized asset offerings, and positive technical patterns point to the possibility of a significant price rebound in the near future. If the price reaches the predicted target of $2.46, it would represent a 113% increase from its current value, making it an attractive opportunity for investors looking for exposure to a promising DeFi project with real-world asset tokenization at its core. However, as with any speculative investment, the situation remains fluid, and investors should remain cautious and informed about any further developments.