Ondo [ONDO] experienced a 6.6% bounce from the $0.41 low formed on Sunday, October 18th. Despite this short-term recovery, the altcoin remained down by 10% over the course of the week. In comparison, Bitcoin [BTC] registered a smaller weekly drawdown of 2.1%, highlighting relative weakness among ONDO bulls.
Broader market conditions contributed to the recent decline. The broader altcoin market capitalization, including Ethereum [ETH], dropped nearly 8% from $1.13 trillion to $1.05 trillion last week, while Bitcoin spot ETFs recorded net outflows of $228.4 million between October 12th and October 16th.
Daily Chart Shows Key Support Levels
On the 1-day timeframe, the $0.425 level previously acted as a supply zone from June through late September. A breakout above this area established a bullish market structure for the asset.
A bullish order block remains highlighted around the $0.43 area, representing a critical zone for buyers to defend. However, the On-Balance Volume (OBV) moved sideways throughout October, and the Relative Strength Index (RSI) declined, pointing to rising bearish momentum.
Shorter Timeframe and Trading Outlook
On the 4-hour chart, the internal market structure remained bearish following a dip below $0.422. The 4-hour OBV did not indicate heavy selling pressure, but seller momentum persisted, and the RSI remained below the neutral 50 level for a week.
Traders continue to monitor the $0.404 low as a vital support level that must hold to keep bullish prospects alive. A daily session close below $0.404 would invalidate the current setup and shift the swing trading bias to bearish.
