On Tuesday, July 22nd, the ONDO coin showed a sharp bounce of +8% to reach the current trading price of $1.16. The buying pressure likely followed broader market momentum and the increasing investors’ optimism as the asset management company 21Shares submitted its S1 filing to launch an exchange-traded fund (ETF) backed by ONDO. The news-driven rally has pushed the asset above a major resistance level of a bullish pattern, signaling the potential for a higher rally.
21Shares Files for Ondo ETF
On July 22nd, the investment management firm focused on cryptocurrency, 21Shares, submitted a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch an ETF backed by ONDO.
This ETF aims to track the value of ONDO coin, offering investors a regulated exposure to the token. For more insights on how exchange-traded funds are shaping the crypto market, check out our comprehensive crypto ETFs guide.
The proposed Ondo ETF is designed as a passive fund, which means it will replicate the value of ONDO without utilizing leverage or derivatives. Instead, it will track the CME CF Ondo Finance-Dollar Reference Rate, a benchmark that aggregates ONDO transactions across major cryptocurrency exchanges. According to the report, Coinbase Custody Trust Company will serve as the ETF custodian.
Despite market enthusiasm, the ETF filing remains subject to SEC review, and the fund is not yet operational. However, if approved, ETH would attract institutional interest and drive mainstream adoption.
Also Read: SUI Futures Open Interest Breaks $1.2B: Major Price Action Ahead?
Breakout From Double Bottom Hints Major Rally Ahead
Since last month, the ONDO coin price has shown a parabolic rally from a $0.62 bottom to the current trading price of $1.12, accounting for 81.5%. The daily chart analysis shows this recovery as the potential formation of a traditional reversal pattern called a double bottom. This W-shaped pattern indicates high-demand pressure at the bottom, signalling a change in market dynamics
With today’s price jump, the coin price shows a bullish breakout from the patient’s neckline resistance at $1.13. A bullish crossover between the 20-and-100-day exponential moving averages, reinforcing the bullish sentiment in the market for a higher rally.
The daily chart closing above the neckline will accelerate the bullish momentum and drive a 40% rally to hit $1.6. However, the potential rally could face in-between resistance at $1.23 and $1.5.
Also Read: U.S. Congress Introduces Crypto Market Structure Framework
