Cryptocurrency ONDO feels the pinch as market-wide downturn accelerates, sparking fears of further plummet.

The cryptocurrency market has been experiencing a downturn, with Ondo Finance [$ONDO] being one of the hardest hit, plummeting 12.62% in the last 24 hours amidst escalating tensions in West Asia and the recent passing of its founder. This decline has not been isolated to $ONDO, as the broader crypto market has also been impacted by the ongoing uncertainty.

A technical analysis of $ONDO's daily chart reveals a fragile outlook, with the price approaching the $0.34 threshold, having dipped below the 200-day Exponential Moving Average (EMA). Should the downward trend persist and the price falls below this critical level, $ONDO may be poised for an additional 12% decline, potentially reaching the next support level of $0.29. However, if the asset manages to maintain its price above $0.34, this bearish projection could be disproven.

The Average Directional Index (ADX) indicates that $ONDO has been exhibiting a strong directional trend, with a reading of 43.77, surpassing the key threshold of 25. This suggests that the asset's price movement has been consistent in its direction.

Derivative platform CoinGlass's data reinforces the bearish outlook for $ONDO, with the Long/Short Ratio declining to 0.865, below the crucial level of 1. This implies that traders are favoring short positions over long positions. Furthermore, liquidation levels of $0.35 and $0.364 have been identified, where traders have accumulated significant long-leveraged and short-leveraged positions, totaling $965,000 and $1.84 million, respectively.

The OI-Weighted Funding Rate for $ONDO has turned negative, dropping to -0.0117%, indicating that traders are increasingly betting on the asset's decline and anticipating further downward momentum. Analytics platform Nansen's data also reveals that $ONDO's exchange reserves have increased by 1.46% over the past week, suggesting that investors and long-term holders are moving their assets from wallets to exchanges, potentially in preparation for sell-offs.

In summary, $ONDO's 12.62% decline has brought its price to a critical neckline level, and a breakdown below this threshold could trigger an additional 12% drop. The collective actions of traders and investors, who are favoring short positions and transferring their holdings to exchanges, align with the bearish market trend, further solidifying the negative outlook for $ONDO.