Digital assets tied to Real World Asset tokenization platforms experienced notable selling pressure on Friday. Ondo token traded over 2% lower, testing a bearish breakout below its 100-day Exponential Moving Average at $0.3530. The primary catalyst driving the market pull-back is the announcement by the US Senate to delay its vote on the CLARITY Act, a legislative measure closely watched by institutions and market participants involved in tokenized financial assets.
Legislative Delay Weighs on RWA Token Platforms
The decision by the US Senate to postpone voting on the CLARITY Act introduced fresh uncertainty across crypto platforms that offer tokenized real-world assets. The proposed legislation was anticipated to clear regulatory hurdles and define operational parameters for tokenization models. Following the delay, institutional sentiment surrounding RWA-focused projects weakened, leading to a broader retreat in asset valuations such as Ondo.
Derivatives Metrics Show Waning Retail Demand
Derivatives market data reflects a notable drop in trader engagement and bullish conviction. According to data provided by CoinGlass, Ondo futures Open Interest declined 7% over the past 24 hours to $176.95 million. This decline in Open Interest signals either an aggressive unwinding of active leverage or a significant contraction in the total notional value of active positions as the underlying spot price corrected downwards.
Liquidation figures further highlight the asymmetrical impact on bullish traders. Over the same 24-hour window, long liquidations totaled $941,190, substantially eclipsing short liquidations which stood at a modest $6,780. Compounding this bearish structural shift, the funding rate flipped negative to -0.0004%, reflecting a dominant short bias among market participants and diminished demand for long positions.
Breakdown Below Exponential Moving Averages
On the daily price chart, Ondo remains firmly in the red, extending the steep corrective trend established over the preceding week. The token is trading below its 200-day EMA at $0.3814 and its 50-day EMA at $0.3629, while aggressively testing the breakdown point beneath the 100-day EMA at $0.3531.
A daily candle close decisively below $0.3531 opens the path for a deeper correction toward the rising support trendline near $0.3295. Traders expect dip-buying interest could potentially emerge near this trendline if broader market selling abates. However, a sustained breakdown beneath this rising support could expose the key horizontal level at $0.2968, which corresponds to the peak recorded on February 3. Conversely, if buyers stage a recovery, initial overhead resistance rests at the 50-day EMA at $0.3629, followed by a stronger hurdle at the 200-day EMA of $0.3814.
Momentum Indicators Signal Sustained Downside Risk
Technical momentum indicators align with the prevailing bearish price action. The daily Relative Strength Index hovers around 43, remaining below the neutral 50 threshold and signaling sluggish buying pressure. Meanwhile, the Moving Average Convergence Divergence indicator has executed a bearish crossover below its signal line, accompanied by an expanding negative histogram. Together, these technical signals indicate that downside pressure continues to build for Ondo in the near term.
