Real-world assets (RWAs) are quickly emerging as a prominent sector in the cryptocurrency space. These RWAs are traditional financial assets, like Treasury bills, that have been tokenized to work with decentralized finance (DeFi) protocols. In the last 24 hours, the price of ONDO has experienced a significant surge due to the successful completion of a pilot program for fund data tokenization by the Depository Trust & Clearing Corporation (DTCC) and Chainlink, in collaboration with major U.S. banks. Consequently, large investors continue to purchase ONDO tokens in anticipation of further price increases.
The pilot program, conducted by the DTCC and Chainlink, aimed to enhance the tokenization of traditional finance funds by standardizing the method of providing net asset value (NAV) data for funds across different blockchains. This was achieved by utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP). A report by the DTCC on May 16 outlined the Smart NAV Pilot program and highlighted its success in integrating structured data on-chain and establishing standard roles and processes. This allowed foundational data to be incorporated into various on-chain applications, such as tokenized funds and smart contracts that manage data for multiple funds.
As a result of this news, RWA tokens like ONDO experienced a significant surge in value, recording an over 11% gain in the past 24 hours. Adding to the excitement surrounding ONDO, a notable increase in whale activity was observed in the past 17 hours. A new investor, identified as 0x803, made a significant move by withdrawing 957 ETH from the Gemini exchange. This whale then exchanged 796.3 ETH (equivalent to approximately $2.38 million) for 2.64 million ONDO tokens at an average price of $0.902 per token.
Whale activities during a price surge often indicate confidence in the potential of a token, and this substantial ONDO purchase has further fueled the bullish sentiment surrounding the cryptocurrency. The DTCC report comes at a time when major traditional financial institutions are increasingly enthusiastic about the tokenization of real-world assets.
In March, BlackRock introduced a tokenized money market fund called BUIDL on the Ethereum network. This fund allows investors to purchase tokens that represent shares in the fund, which in turn invests in assets such as U.S. Treasury bills. Known as the “digital liquidity fund,” it operates as an ERC-20 token called BUIDL.
Looking ahead, the price of ONDO has been attempting to surpass the anticipated resistance at $1, but has faced resistance from bears. Although the price has been surging above the EMA trend lines in the past 24 hours, the bears may soon cool down the market sentiment. Currently, ONDO is trading at $0.94, experiencing an 8% surge from the previous day.
A potential positive for the bears is that they have managed to maintain the price around $0.9, increasing the likelihood of an immediate correction. If successful, the ONDO/USDT pair could test the next support level at $0.63.
It is crucial to monitor the moving averages as a support level on the downside. A break and close below this support could indicate a consolidation phase for the pair between $0.41 and $0.63 in the coming days.
Both moving averages are trending upwards, and the RSI is near the overbought zone on the 4-hour chart, indicating an advantage for the bulls. Buyers will aim to strengthen their position by pushing the price above $1.
On the other hand, the bears will try to push the price below the 20-EMA to show their aggressive defense of the overhead resistance, potentially causing the pair to drop to the 50-SMA.
