• Ondo extends gains for the fifth consecutive day this week, testing the resistance cluster of the 50-day EMA and a declining trendline.
• On-chain data shows a steady increase in Ondo’s TVL to $2.92 billion, with the tokenization of Franklin Templeton’s investment products on Wednesday.
• Derivatives data suggests increased trader participation as Open Interest crosses above $100 million.

Ondo (ONDO) continues to rise for the fifth straight day, bringing its total gains to roughly 12% so far this week. Onboarding Franklin Templeton’s $1.7 trillion in financial products as tokenized Real-World Assets (RWA) on Ondo fuels Ondo's Total Value Locked (TVL). Derivatives data show a surge in trader participation based on the double-digit increase in ONDO futures Open Interest over the last 24 hours.

The technical outlook for ONDO is mildly bullish as the short-term surge in buying pressure could break above the four-month-long declining trendline.

Onboarding Franklin Templeton's tokenized ETFs

Ondo announced the partnership with Franklin Templeton on Wednesday to bring its Exchange Traded Funds (ETFs) on-chain via tokenization. The on-chain version of Franklin Templeton’s ETFs, with over $1.7 trillion in assets under management (AUM), will offer 24/7 trading. The TVL on Ondo – refers to the value of assets tied to the platform – has surged to $2.92 billion, up from $2.70 billion on Wednesday. 

According to Sandy Kaul, Head of Innovation at Franklin Templeton, “The global ETF market is $30 trillion. Even if we get just 5% from new audiences, we're talking about $1.5 trillion more dollars coming into the crypto ecosystem. I think it could be much higher than that.”

Bullish signals from Ondo derivatives

Derivatives data shows an over 17% increase in ONDO futures Open Interest (OI) over the last 24 hours, reaching $105.21 million, suggesting a boost in traders' participation. However, the 24-hour liquidation totals to $648,420, led by $455,470 in long liquidations, suggesting a larger wipeout of bullish positions. 

Despite the wipeout, the positive funding rate of 0.0018% reflects a bullish trend in capital inflows into ONDO futures.

Technical Analysis: Is Ondo ready for a breakout rally?

Ondo shows a steady recovery for the fifth consecutive day after bouncing off 3.50% on Monday and holding ground above the February 9 low at $0.2405. At the time of writing, ONDO is up 3% on Friday, pushing against a descending resistance trendline close to the 50-day EMA at $0.2767.

A decisive close above $0.2767 would confirm the breakout, exposing the February 3 high at $0.2968, followed by the 100-day EMA at $0.3360.

The Moving Average Convergence Divergence (MACD) line has turned positive again and is above its signal line on the daily chart, and the green histogram bars are expanding, suggesting renewed upside momentum. The Relative Strength Index (RSI) at 57 edges higher from the midline, reinforcing a build-up in bullish pressure with further room on the upside before reaching the overbought conditions.

Looking down, a bearish close to the day would reaffirm the downside pressure, which could push ONDO down to the February 9 low at $0.2405. If Ondo slips below this level, it could extend the decline to the February 6 low at $0.2018.

(The technical analysis of this story was written with the help of an AI tool.)