Key Takeaways

The launch of Fidelity’s FDIT on-chain money market fund highlighted ONDO’s growing list of top-tier asset manager partnerships, but the price movement in the coming days might not reflect intense bullishness.

Major asset managers continued to tokenize traditional financial products. Fidelity launched the Fidelity Digital Interest Token (FDIT) on the 10th of September.

It is an on-chain money market fund backed by U.S. Treasuries, mostly from Ondo Finance’s [ONDO] Short-Term U.S. Treasuries Fund (OUSG) as the only anchor and largest investor.

In doing so, Fidelity joined BlackRock, WisdomTree, and Franklin Templeton in offering tokenized money market or Treasury funds. Since the OUSG launch in June 2023, Ondo Finance was one of the first tokens with on-chain access to U.S. Treasuries.

Over the past two days, ONDO has gained 14.1%, rallying from $0.95 to $1.08. Bitcoin [BTC] was up 3.3% and Ethereum [ETH] climbed 5.4% during the same period, helping explain ONDO’s bullish sentiment.

However, technical analysis showed that the token was headed toward a supply zone, and traders and investors should be wary of a trend reversal.

Range-bound price action of ONDO threatens bulls

The 1-day market structure was bullish, and the key swing high and low were marked in orange. They were at $1.17 and $0.85, respectively, while a range formation (white) was also identified. ONDO has traded within this r

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Author: Akashnath S