Last week, the price of ONDO witnessed a significant increase from $0.40 to $0.90, doubling its holder base in just one month. This striking rise pushed its market value to a realized value (MVRV) Z Score of 3.63, which could indicate a signal of the cryptocurrency being overvalued.
ONDO’s Price Increase
Despite the concerns mentioned, the exponential moving average (EMA) lines for Ondo Finance (ONDO) could predict a very bullish outlook. In the early months of 2024, ONDO saw a steady increase in its investor base, adding 100 to 300 new investors daily. This steady progress was clearly seen on February 26th, when the number of holders reached 4,872.
However, the growth trajectory took a turn in the last week of March, witnessing a sharp rise. As of March 25th, ONDO holders exceeded the 10,000 mark, marking a significant milestone. This remarkable increase in holders represents more than a doubling of the investor community in just one month. This rise closely aligns with the impressive increase in ONDO’s price valuation from $0.40 on March 19th to $0.95 on March 25th.
This situation could mean a 137.5% increase in just six days. If this growth momentum is sustained, it could strengthen new investors’ belief in ONDO’s potential and potentially signal even higher price peaks in a short time. Such rapid expansion could serve as a catalyst for further increases in ONDO’s price. The ONDO MVRV Ratio (Z Score) drew attention with a sharp rise from 1.39 to 3.57.
Current Data on ONDO
The increase occurred between March 19th and March 25th. The MVRV Z Score measures a token’s fair value by comparing the market value to the realized value. It reflects the current price against the average price paid by investors. The Z Score indicates deviations from the token’s typical MVRV. It helps identify times when a token is unusually high or low in value.
On the other hand, although the EMA lines are currently in a very bullish position for ONDO, the MVRV Z Score and the recent price increase could lay the groundwork for a strong correction soon. According to cryptocurrency experts, ONDO could correct to $0.84 before attempting new highs. However, if the bullish trend continues, it could surpass its previous record of $0.95 and potentially reach $1.
