RWA Token ONDO Soars 10% Post DTCC-Chainlink Pilot with U.S. Banks; Whale Invests $2.38M in ONDO

Real-world assets (RWAs) are rapidly becoming a leading sector in the crypto space. Essentially, these are traditional financial assets, such as Treasury bills, that have been tokenized to work with decentralized finance (DeFi) protocols. Over the last 24 hours, ONDO price has been skyrocketing due to the successful completion of a fund data tokenization pilot by the Depository Trust & Clearing Corporation (DTCC) and Chainlink in collaboration with major U.S. banks. As a result, whales continue to scoop up ONDO in anticipation of further price increases. 

DTCC-Chainlink Pilot Competition

The Depository Trust and Clearing Corporation (DTCC), the world’s largest settlement system, and blockchain oracle Chainlink have completed a pilot program with several major U.S. banks to enhance the tokenization of traditional finance funds.

According to a May 16 DTCC report, the Smart NAV Pilot program aimed to standardize the method of providing net asset value (NAV) data for funds across blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

The price of #RWA token $ONDO pumped ~10%, after DTCC, #Chainlink completed fund data tokenization pilot with U.S. banks!

In the past 17 hours, New whale 0x803 withdrew 957 $ETH from #Gemini and has swapped 796.3 $ETH ($2.38M) for 2.64M $ONDO at ~$0.902!

The $ONDO buying is… pic.twitter.com/PP8FNUmPWC

— Spot On Chain (@spotonchain) May 17, 2024

The report stated, “The pilot demonstrated that by delivering structured data on-chain and establishing standard roles and processes, foundational data could be integrated into various on-chain applications, such as tokenized funds and ‘bulk consumer’ smart contracts, which are contracts that manage data for multiple funds.”

As a result of this news, RWA tokens including ONDO witnessed a massive surge, recording over 11% gain in the last 24 hours. Contributing to the excitement surrounding ONDO, a significant whale activity was observed in the past 17 hours. A new whale, identified by the address 0x803, made a notable move by withdrawing 957 ETH from the Gemini exchange, according to the spot on chain.

This whale then proceeded to swap 796.3 ETH, equivalent to approximately $2.38 million, for 2.64 million ONDO tokens at an average price of $0.902 per token.

Whale activities during a price surge often indicate confidence in the potential of a token, and this substantial ONDO purchase has accelerated the ongoing bullish sentiment around ONDO.

The DTCC report emerges amidst growing enthusiasm for real-world asset tokenization among major traditional financial institutions.

On March 19, BlackRock introduced a tokenized money market fund named BUIDL on the Ethereum network, offering yields in native U.S. dollars.

This fund enables investors to buy tokens that represent shares in the fund, which invests in assets such as U.S. Treasury bills. Known as the “digital liquidity fund,” it is digitized on the Ethereum blockchain and operates as an ERC-20 token called BUIDL.

What’s Next For ONDO Price?

ONDO price has been trying to surpass the much-anticipated resistance at $1, but the bears are holding firm. Over the last 24 hours, the price has been skyrocketing above EMA trend lines; however, bears might soon cooldown the overheated sentiment. As of writing, ONDO price trades at $0.94, surging over 8% from yesterday’s rate.

A minor positive for the bears is that they have maintained the price around $0.9, increasing the chances of an immediate correction. If successful, the ONDO/USDT pair could challenge the next support at $0.63.

The crucial support to monitor on the downside is the moving averages. A break and close below this support could indicate that the pair may consolidate between $0.41 and $0.63 for a few days.

Both moving averages are trending upwards, and the RSI is near the overbought zone on the 4-hour chart at level 77, suggesting that the bulls have an advantage. Buyers will aim to strengthen their position by pushing the price above $1.

Conversely, the bears will attempt to pull the price below the 20-EMA. If successful, it will indicate that the bears are aggressively defending the overhead resistance, potentially causing the pair to drop to the 50-SMA.