Real-world assets (RWAs) are quickly emerging as a prominent sector within the cryptocurrency space. RWAs are traditional financial assets, such as Treasury bills, that have been tokenized to function with decentralized finance (DeFi) protocols. In recent news, the price of ONDO has experienced a significant surge following 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. This has led to increased interest from whales who are eagerly acquiring ONDO in anticipation of further price gains.
The DTCC and Chainlink have concluded a pilot program in partnership with several major U.S. banks to enhance the tokenization of traditional finance funds. The program, known as the Smart NAV Pilot, aimed to standardize the provision of net asset value (NAV) data for funds across different blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). The successful completion of this pilot has resulted in a ~10% increase in the price of the RWA token ONDO. This surge in price has been driven by the news of the fund data tokenization pilot’s completion.
In the past 17 hours, a new whale identified as 0x803 has made a significant move in the market. This whale withdrew 957 ETH from the Gemini exchange and exchanged 796.3 ETH (equivalent to $2.38 million) for 2.64 million ONDO tokens at an average price of $0.902 per token. Such whale activity during a price surge often indicates confidence in the potential of a token, and this substantial ONDO purchase has further fueled the bullish sentiment surrounding ONDO.
The DTCC’s report comes at a time when major traditional financial institutions are increasingly showing enthusiasm for the tokenization of real-world assets. BlackRock, for instance, recently introduced a tokenized money market fund called BUIDL on the Ethereum network, offering yields in native U.S. dollars. This fund allows investors to purchase tokens that represent shares in the fund, which invests in assets like U.S. Treasury bills. Known as the “digital liquidity fund,” it operates as an ERC-20 token called BUIDL and is digitized on the Ethereum blockchain.
Looking ahead, the price of ONDO has been attempting to surpass the anticipated resistance level at $1, but the bears are currently holding their ground. Despite the price skyrocketing above the EMA trend lines in the past 24 hours, it is possible that the bears may soon cool down the market sentiment. At present, ONDO is trading at $0.94, marking an 8% surge from yesterday’s rate.
One positive aspect 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 potentially challenge the next support level at $0.63. It is crucial to monitor the moving averages as a key support on the downside. A break and close below this level could indicate a consolidation phase between $0.41 and $0.63 for a few days.
On the 4-hour chart, both moving averages are trending upwards, and the RSI is nearing the overbought zone at level 77, suggesting an advantage for the bulls. Buyers will aim to strengthen their position by pushing the price above $1. Conversely, the bears will attempt to pull the price below the 20-EMA, signaling their aggressive defense of the overhead resistance and potentially causing the pair to drop to the 50-SMA.
Tags: DeFi, LINK