Ondo Finance (ONDO) extended its decline on Wednesday, trading near $0.3904 and slipping below the critical $0.40 psychological level. The correction follows a sharp drop in derivatives market participation, with futures Open Interest tumbling from a May peak of nearly $245 million to around $201 million by midweek, signaling waning speculative appetite after the token failed to sustain recent gains near the May high of $0.4877.
Despite the pullback, leveraged traders remain cautiously optimistic. The weighted funding rate stayed positive at roughly 0.0049%, showing that long position holders continue paying premiums to keep their bullish bets alive. Technical indicators also support the broader structure: ONDO remains above the 50-day and 100-day EMAs (around $0.3100) and the SuperTrend support near $0.3348, while the RSI hovers in the mid-60s range, indicating buyers still control momentum.
Behind the scenes, institutional engagement is deepening. A recent cross-border Treasury bond trade executed in under five seconds involved Ripple, Mastercard, and J.P. Morgan's Kinexys, showcasing Ondo's role in tokenized finance. The project holds nearly $2.7 billion in total value locked across its tokenized Treasury products, while the overall real-world asset market has surpassed $37.5 billion. Key backers like BlackRock, Morgan Stanley, and Coinbase further cement Ondo's credibility in bridging traditional finance with blockchain infrastructure.
However, risks linger: ONDO has plummeted from its all-time high of $2.14 in December 2024, and a massive token unlock of 1.94 billion ONDO scheduled for January 2027 could pressure prices if demand fails to absorb the new supply. For now, the token finds support between $0.34 and $0.35, with a decisive close above the 200-day EMA at $0.4017 needed to revive upward momentum.
