Technical analysis by MJVeats about Symbol ONDO on 5/9/2025

Hey traders! 👋I’ve been watching this chart closely and spotted something that might interest you — a potential breakout from a descending channel. But while the bulls are showing some signs of life, we also need to consider the possibility of a continuation to the downside.Let’s break it down together.🧠 Market ContextThe market has been trading inside a descending channel, creating lower highs and lower lows — a typical bearish trend structure. However, recent price action shows the bulls testing the upper boundary, hinting at a potential shift in momentum.📊 Chart Breakdown🔻 Descending ChannelThe price has respected the descending channel for a while, bouncing between the upper resistance and lower support. The current movement shows price pushing against the upper trendline, which could indicate a breakout is underway.🔍 Key Technical CluesBreakout Attempt in ProgressPrice is testing the upper boundary of the channel. A confirmed breakout would require a strong candle close above the trendline supported by volume.Volume SpikeNoticeable volume increase near the support zone and again during this breakout attempt — this could signal buyer interest.Ichimoku ConfirmationThe price has crossed above the Kijun-sen (orange line), and the flat Kumo cloud is providing a base of support — both are potential bullish indicators.Strong Support ZoneThe red horizontal zone marks a significant support level that has held in the past. The recent bounce from this area adds weight to the bullish case.🎯 Take-Profit LevelsIf this breakout holds, we could target the following levels:TP1 – Nearest resistance after the breakoutTP2 – Midway target aligned with previous consolidationTP3 – A stretch target near earlier highs or Fibonacci extensions🔮 Trade Scenarios: Two Possible Outcomes✅ Bullish BreakoutIf the price closes above the descending channel with strong volume:This would confirm the breakout.Potential long setup with targets at TP1, TP2, and TP3.A stop-loss can be placed just below the breakout area or below the Kijun-sen for tighter risk management.⚠️ Bearish Continuation (Fakeout Risk)This setup is not guaranteed to break out — we must consider the possibility of a failed breakout or a bull trap, especially if:The price gets rejected at the upper trendline and closes back inside the channel.There’s no follow-through from buyers or volume fades.A bearish candlestick pattern (e.g., bearish engulfing) forms near resistance.If this happens:The price could resume the downtrend within the channel.A break below the red support zone might even lead to a retest of the all-time low.🛡️ How to Trade This?Wait for Confirmation — Don’t jump in until a breakout candle closes above the trendline with strong volume.Set Alerts — Monitor price behavior at the resistance and support zones.Protect Your Capital — Use proper stop-losses and position sizing.📌 Final ThoughtsThis is a classic case of a potential trend reversal — but until confirmed, it’s just a setup. Whether we see a breakout or a rejection, this is a great chart to learn from and prepare for both outcomes.📢 What do you think? Will the bulls break through, or are we heading lower? Drop your thoughts and analysis in the comments — let’s discuss!Happy trading, and remember to always manage your risk! 💹