Ondo price rises as a rare chart pattern suggests a potential 45% surge

Ondo Finance has seen a significant surge in its price, rising by more than 10% on Friday, making it one of the top performers in the market. The rally follows a series of positive developments that have fueled interest in Ondo Finance, particularly within the tokenization space.

The price surge comes after Larry Fink, the CEO of BlackRock (the world’s largest asset manager with over $10.7 trillion in assets), called on the Securities and Exchange Commission (SEC) to approve tokenized stocks and bonds. His statement has brought additional attention to the emerging trend of asset tokenization, further fueling the growth of platforms like Ondo Finance.

BlackRock itself has been actively involved in the tokenization space, particularly through its BUIDL product, which currently manages over $640 million in assets. Ondo Finance has partnered with BlackRock’s BUIDL to manage its Short-Term US Government Treasuries product, which holds more than $189 million in assets. The growing interest in tokenized assets has certainly benefited Ondo, with the company becoming a focal point for investors in the sector.

Adding to this positive momentum is the anticipation surrounding the Ondo Summit, the platform’s inaugural event scheduled for Feb. 6, 2025. The summit will bring together prominent figures from major financial institutions, including BNY Mellon, BlackRock, Fidelity, Franklin Templeton, WisdomTree, and Pantera, along with representatives from the Commodity Futures Trading Commission (CFTC). The event is expected to showcase the latest developments in tokenization and its potential to disrupt the traditional financial services industry. Speculation around potential partnerships and announcements at the summit has also boosted optimism, with investors expecting Ondo Finance to perform strongly ahead of and during the event.

In addition to the fundamental developments, Ondo’s price has also been influenced by technical factors. OND peaked at $2.15 in December before pulling back to a low of $1.0950. The subsequent price movement has formed a falling wedge pattern, with the upper trendline connecting the highest price swings since December 16 and the lower trendline connecting the lowest levels since November. As these two lines converge, the breakout from this pattern suggests a bullish outlook.

Ondo has also retested a key resistance level at $1.4850, which corresponds with the upper side of a cup and handle pattern, another bullish sign. Additionally, an inverse head and shoulders pattern has formed, further supporting the potential for a price increase.

Based on these technical indicators, Ondo is expected to continue its upward trajectory, with the next key target at $2.1430, representing a 45% gain from its current price level. However, this bullish outlook would be invalidated if the price falls below the support level at $1.0950, which would signal a potential reversal in the trend.

The combination of positive news, fundamental developments, and strong technical indicators makes Ondo Finance an intriguing asset for investors, especially as the sector of asset tokenization continues to grow and gain traction in the financial industry.