The Ondo token (ONDO) has retreated to $0.34 following a failed attempt to sustain its May peak of $0.47. This price corretcion follows a broader market downturn triggered by a significant sell-off in Bitcoin (BTC).

The $0.47 ceiling and the Bitcoin contagion

The Ondo token's recent volatility is deeply intertwined with the broader movements of the cryptocurrency market. as the report indicates, ONDO's inability to maintain its momentum is closely linked to a rapid sell-off in Bitcoin, which has created fearful market conditions across the altcoin sector. This contagion effect suggests that even when individual assets show strength,they remain vulnerable to the macro-trend set by Bitcoin.

This current struggle echoes previous attempts by the asset to establish a new bullish baseline. Although ONDO rallied strongly in early May, it failed to achieve a daily session close above the $0.47 swing high that was established back in January. This failure to break a long-standing resistance level has left the bearish trend largely intact, signaling that the recent upward movement lacked the sustained demand necessary to flip the long-term market structure.

The breach of the $0.335 to $0.350 demand zone

Technical indicators suggest that the support levels for ONDO are rapidly eroding. According to the source's analysis, the crucial lower timeframe demand zone, which sat between $0.335 and $0.350, has been breached to the downside. This break is significant because it removes a primary cushion that traders were relying on to stabilize the price.

The breakdown is further evidenced by the H4 timeframe structure, which has officially turned bearish. The recent attempt at a bounce to $0.372 has already reversed, leaving the asset within a short-term trading range of $0.34 to $0.45 that has now been broken. With the price sliding through these key levels, the immediate technical outlook for ONDO remains heavily weighted toward further depreciation.

A potential dive toward the $0.31 floor

Liquidation risks are currently concentrated at much lower price points. A review of the liquidation map from the past three months reveals that the $0.31 to $0.34 price range contains a high amount of cumulative long leverage. This concentration of leveraged positions creates a volatile environment where a sudden price drop could trigger a cascade of forced liquidations.

While a short-term bounce toward the $0.376 to $0.385 level remains a mathematical possibility, analysts warn it may simply be a "liquidation hunt" to the upside. Such a move would likely be followed by a sharp dive toward the $0.31 mark as the market seeks to clear out the remaining long positions. Traders are essentially caught between a potential trap and a looming floor.

Will the MFI drop below 50 signal a permanent exit?

Several critical questions remain regarding the sustainability of this downturn. First, will the Money Flow Index (MFI) on the H4 timeframe successfully drop below 50, which would confirm increased capital outflows and a definitive shift in momentum? Second, is the current Bitcoin-led sell-off a temporary correction or a structural shift that will keep ONDO suppressed for the foreseeable future? Finally,the report focuses exclusively on technical price action, leaving the fundamental reasons behind the recent ONDO volatility—such as institutional interest or regulatory shifts—entirely unaddressed.