• Ondo edges closer to a Cup and Handle pattern breakout, projecting a 14% breakout.
• NASDAQ files with the US SEC, seeking listing of tokenized securities alongside traditional stocks.
• Ondo Finance's tokenized US securities could benefit if the SEC approves NASDAQ's request.

Ondo (ONDO) price displays bullish potential, trading above $0.93 on Monday. Risk-on sentiment is gradually returning to the broader cryptocurrency market, backed by favorable regulations in the United States (US) and optimism that the Federal Reserve (Fed) could cut interest rates next week.

NASDAQ seeks approval to list tokenized securities 

NASDAQ has filed with the US Securities and Exchange Commission (SEC) to introduce trading of tokenized securities amid growing interest in the new asset class. If approved, the development would mark a new era for Wall Street, becoming the first stock exchange providing access to tokenized securities in the US.

The filing made on Monday seeks to modify NASDAQ's listing rules to pave the way for blockchain-based settlement amid easing US crypto regulations. According to Reuters, tokenized securities will be listed on the platform's main market in "either traditional digital or tokenized form."

The SEC has recently announced changes to its rule-making mandate, which includes amendments that allow for crypto to be listed on national exchanges and other alternative trading systems in the US.

NASDAQ believes it is a prime time for integrating tokenized assets, ensuring users benefit from the protection of the national market system.

"Wholesale exemptions from the national market system and related protections are neither necessary to achieve the goal of accommodating tokenization, nor are they in investors' best interests," Nasdaq said in a statement.

Meanwhile, Ondo Finance, one of the companies promoting the adoption of tokenized securities on Wall Street, announced the launch of over 100 tokenized stocks and ETFs on September 1, thereby ensuring access to global capital markets.

Ondo Finance also offers active tokenized US Treasuries. The offering, which targets institutional investors, provides qualified purchasers with exposure to short-term US Treasuries and money market funds (MMFs) with instant stablecoin mints and redemptions.

The likely adoption of tokenized stocks on NASDAQ could immensely benefit protocols like Ondo Finance, which are already building key verticals in the sector. Moreover, demand for ONDO could also rise, significantly increasing its value with time. 

Technical outlook: ONDO rises ahead of Cup and Handle breakout 

Ondo holds above the 100-period Exponential Moving Average (EMA) at $0.92 on the 4-hour chart. At the same time, bulls are pushing to break the 200-period EMA resistance at $0.93 to pave the way for a Cup and Handle pattern breakout.

ONDO's bullish structure is supported by a buy signal from the Moving Average Convergence Divergence (MACD) indicator within the same 4-hour timeframe. The position of the MACD line in blue above the red signal line, as the indicator rises, encourages traders to seek exposure.

A sharp rise in the Relative Strength Index (RSI) at 63 indicates buying pressure is increasing.

ONDO/USDT 4-hour chart

Traders will look out for a breakout at the dotted neckline resistance, which would validate a potential 14% increase to $1.08. This target is determined by measuring the height of the pattern from the neckline to the bottom and extrapolating it above the breakout point. If profit taking introduces volatility, tentative support levels include the 100-period EMA at $0.92 and the 50-period EMA at $0.91.