Crypto Quill

Ondo Finance just took a big step toward launching a spot ETF, and traders are watching the ONDO token like never before. The price is squeezing into the tip of a falling wedge pattern that often ends with a sharp move up. A fresh SEC filing and growing institutional interest could push the token past key resistance soon.

21Shares submitted an updated S-1 amendment to the Securities and Exchange Commission this week. The big change is simple but important. The firm wants to rename its proposed product from “21Shares Ondo Trust” to the cleaner “21Shares Ondo ETF.”

This name switch shows the company is confident the SEC will green-light the fund soon. Spot crypto ETFs have become the fastest-growing investment vehicles in the United States since Bitcoin and Ethereum versions launched last year. An approved Ondo ETF would let traditional investors buy exposure through regular brokerage accounts without touching wallets or exchanges.

The filing did not add new details about custody or fees, but the timing matters. Analysts say issuers are rushing final tweaks before the SEC’s next review window.

ONDO Price Forms Classic Bullish Wedge

On the daily chart, ONDO has been trading inside a falling wedge since early January. The upper trend line connects lower highs, while the lower trend line catches lower lows. Both lines now meet near $0.28, creating what traders call the apex.

Falling wedges resolve higher roughly 70 percent of the time in crypto markets. A clean break above the upper line, currently around $0.31, would confirm the pattern and open the door to quick gains.

The token lost 1.3 percent on February 8, closing at $0.293. That small drop fits the broader market pullback after the sudden flash crash earlier this week. Bitcoin and most large caps are still finding their footing, which keeps pressure on altcoins like ONDO.

Key Resistance Levels to Watch

Buyers face two moving hurdles right away. The 20-day exponential moving average sits at $0.317 and the 50-day EMA rests at $0.338. Both lines have capped rallies over the past month.

If the price clears those levels with strong volume, the next major target is the December high near $0.42. A weekly close above $0.35 would flip the short-term trend from bearish to bullish and likely draw fresh money.

Here are the levels traders are marking right now:

• Immediate resistance: $0.31 (wedge top)
• Next resistance: $0.338 (50-day EMA)
• Major psychological level: $0.35
• Pattern target: $0.45-$0.48 if breakout confirms

Support sits at $0.27. A drop below that would cancel the bullish setup and point to new lows.

Why Institutional Backing Changes Everything

Ondo Finance focuses on bringing real-world assets onto the blockchain. The platform tokenizes things like U.S. Treasury bonds and money-market funds so DeFi users can earn yield in a regulated way. Big players such as BlackRock and Morgan Stanley have already parked hundreds of millions into Ondo products.

An ETF would open the door for retirement accounts, pension funds, and advisors who still avoid direct crypto exposure. That steady inflow often creates a floor under the price and reduces violent swings.

Trading volume jumped 40 percent in the 24 hours after news of the amendment broke. Open interest on perpetual futures also climbed, showing new money is entering positions.

What Happens Next for ONDO Holders

The next seven to ten days look critical. The wedge apex arrives around February 18. Traders expect a decisive move before then, either a breakout higher or a breakdown that tests $0.24 support.

Market watchers point out that every major spot ETF so far has seen a strong price rally in the weeks before launch. If the pattern holds, ONDO could deliver one of the biggest short-term gains among large-cap tokens this quarter.

The combination of technical setup and real regulatory progress has put ONDO back on the radar for both retail and institutional buyers. A clean move above $0.35 would signal the correction is over and higher prices lie ahead.

This moment feels like the calm before a storm, the kind that often rewards patient holders. The falling wedge is tightening, the ETF filing is fresh, and the market is watching. Will ONDO lead the next leg up in real-world asset tokens? Many traders are betting yes.