ONDO's price is currently testing a critical resistance level of $0.8276, and breaking this barrier could ignite a surge to $1.0 and potentially reach $1.37.

The native cryptocurrency of Ondo DAO, ONDO, has been making impressive strides in the digital currency market. Over the past week, ONDO's price has gained 8%, currently trading at $0.82. Market analysts predict that this rally could continue, potentially yielding 50-60% returns.

What's Fueling the ONDO Price Surge?

On April 11, Circle, the issuer of the USDC stablecoin, introduced a new smart contracts function that allows for instant redemptions from the recently launched BlackRock BUIDL fund for USDC stablecoins. Ondo Finance's tokenized asset platform quickly took advantage of the near-instant conversions between USDC and BUIDL.

Last month, BlackRock, the world's largest asset manager, made waves in the asset tokenization market by launching its own BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund is represented by the Ethereum-based BUIDL token, which offers daily yields to token holders through blockchain channels. Ondo Finance was among the first to back the fund, using it as collateral for its OUSG token.

Recent data from Lunacrush shows that an Ondo wallet on the Ethereum blockchain recently exchanged $250,000 worth of BUIDL tokens for USDC. Nathan Allman, CEO of Ondo Finance, explained, "We are using it to facilitate immediate 24/7/365 redemptions of OUSG into USDC." OUSG is the Ondo Short-Term U.S. Government Treasuries token, which is backed by securities issued by the U.S. government.

Can ONDO's Price Rally Continue to $1.37?

Since the beginning of the month, ONDO's price has been consolidating just below the $0.8276 support level. If the broader market remains strong, ONDO may overcome this resistance and turn it into support, potentially leading to significant gains for ONDO holders, possibly reaching the psychological level of $1.0000, representing a 20% increase from current levels.

The significance of $0.8276 lies in its previous high that later became support. Currently, the ONDO price is once again trading near this resistance level. A breakout above this could lead to a price rally to $1.0.

According to crypto analyst Decilizer, ONDO has established support at $0.75 and is now moving toward the next target of $1.37, provided that Bitcoin maintains its bullish momentum.