ONG Primed for Plunge: A Long Squeeze Looms

Current market conditions reveal a generally bullish sentiment across most altcoins; however, ONG is facing intense downward pressure due to its overwhelmingly long-biased positions on Bybit. The average daily funding rate of -11.351% on Bybit is exceptionally high and has remained stable, indicating a consistent premium paid by longs to maintain their positions.

ONG's current price of $0.09, coupled with its $1.50M open interest, suggests a vulnerable market structure. The consistently negative and high funding rates highlight a significant imbalance between longs and shorts, making ONG a prime long squeeze candidate. Long holders are incentivized to close their positions, and any notable price decrease could trigger margin calls and cascading liquidations, amplifying downward price action.

Key price levels to watch include initial support around $0.085, followed by $0.08. Breaching these levels would likely accelerate the squeeze. Conversely, a move above $0.10 could temporarily alleviate the pressure, but the high funding rates suggest this is less likely.

Compared to other candidates, ONG exhibits the most extreme funding rate imbalance and concentrated open interest on a single exchange (Bybit), increasing its vulnerability. This concentration heightens the potential for a swift and significant price decline.

While historical context for ONG-specific long squeezes is limited due to its relatively short trading history, the current funding rate dynamics are reminiscent of other altcoins that have experienced significant long liquidations in the past. The constant bleed from funding creates strong incentives to exit long positions, setting the stage for a potential squeeze.