Key Takeaways
The price of Ondo (ONDO) rebounded 10 percent on May 24, 2026, but the rally was marked by a surge in leveraged trading that outpaced spot market demand, signaling potential instability.
"ONDO is seeing massive liquidation spikes as volatility returns," market analysis account Whale Factor said on X. The comment pointed to a pattern of both short and long liquidations, suggesting large traders are engineering moves to accumulate positions.
The sharp recovery to the $0.40 zone was fueled by a rush of leveraged long positions, according to on-chain data. However, spot buying across major exchanges like Binance and Coinbase did not show a corresponding increase in demand. This divergence suggests the current price action is speculative and not supported by investors taking long-term positions. The market structure remains fragile, with a significant risk of a downturn if the over-leveraged traders are forced to sell.
This event places ONDO at a critical juncture. The token is testing the formidable $0.40 resistance level, a zone that has repeatedly capped upside attempts. A failure to break through this level on significant volume could see the price fall back toward the $0.35 support area. The price action of Bitcoin and Ethereum will also be a key factor, as broader market sentiment often dictates the direction of altcoins like ONDO.
This article is for informational purposes only and does not constitute investment advice.
