Derivatives data shows that the current open interest is $20.80 million, with a funding rate of positive (+0.00054%). This indicates that market sentiment is slightly bullish, or in other words, bullish traders are paying fees to the bears to maintain their positions, which could fuel the bears in a downtrend.
From the perspective of institutional order flow, ONDO is in a clear downtrend on the 4-hour chart. After hitting a low of $0.3597, it is currently undergoing consolidation and a corrective rebound.
**Liquidity Hunt:**
The main objectives of the 'smart money' may be twofold. Firstly, they may push the price up to the $0.4000 - $0.4150 range to trigger buy stop liquidity above this area (bullish stop orders), and establish or increase short positions here. Secondly, the ultimate goal is to hunt down the large amount of sell-side liquidity accumulated below the $0.3597 low (bearish stop orders).
**Trend Bias:**
The current upward move is likely a 'false breakout' or a baiting behavior, rather than a true trend reversal. The primary trend remains bearish. The price is operating below the key EMA moving averages (EMA25, EMA99), which constitute dynamic resistance. Institutional traders tend to take advantage of this rebound to the resistance area to short at more favorable prices.
**Execution Strategy:**
Based on the above analysis, our strategy is to place orders in the upper liquidity area or wait for price rejection before shorting, with the goal of testing and breaking below the previous key low.
Institutional Setup:
Entry Area: $0.4000 - $0.4150
Target 1: $0.3597 (Liquidity Target)
Target 2: $0.3450 (Trend Target)
Stop Loss: $0.4250##USGDPUpdate #ONDO
