Ontology has undergone an incredible surge over the past few weeks. The cryptocurrency has risen by 13% over the past 7 trading days with a further rather impressive 72% price hike over the past 30 trading days. This makes Ontology the highest performing cryptocurrency in the top 20 for the month of March 2019.
Ontology is a cryptocurrency dedicated to making blockchains more accessible to regular businesses. The high-performance blockchain, developed by the Chinese blockchain company OnChain, has a plethora of customisable solutions available for businesses to integrate blockchain technology into their already established business.
With the excitement brewing within the project, we decided to see if Ontology has the potential to increase by 300% and hit $5.00 before the end of 2019. The chart below shows how far Ontology will need to travel before reaching the $5.00 level and completing the 300% surge.
Ontology Positive Drivers
Ontology has amassed a slew of partnerships that will greatly increase the accessibility of the blockchain to a wide range of users.
Ontology announced their partnership with MovieBloc this month, causing a positive frenzy in price action. MovieBloc is a Korean video streaming platform that is run by Pandora.TV. The partnership aims to create a brand new “participant-centric” ecosystem for the movie industry which will leverage Ontology blockchain technology.
The film industry is heavily controlled by established powers, making it difficult for movie producers and directors to receive any type of exposure or distribution for their in-house produced movies.
The MovieBloc partnership aims to solve this problem by granting movie creators equal screening time on the platform as well as transparent revenue shares and audience data. The viewers of the films will also get a piece of the action from curation, subtitles and marketing content provided to the community.
Decentralized applications are one of the hottest product types birthed by the blockchain industry. Dapps are run directly on top of the blockchain without the need to run through a third-party provider such as Google Play.
However, dapps have struggled to gain traction due to the infancy of blockchain technology speed.
For example, the Ethereum blockchain can only currently handle around 25 transactions per second (TPS). This number is far too small for any dapp to gain a large following due to the limited number of TPS capable by the network.
Ontology has been dubbed as a high-performance blockchain for a specific reason. Unlike its competitors, Ontology has been able to reach a high TPS rate of 5.000 without any performance enhancements. With such a high throughput already, the Ontology blockchain is a perfect network for developers to build their dapps on top of.
Ontology recently announced a partnership with Parity Games to co-build a gaming platform that will utilize Ontology technology. Ontology will also help to provide capital and marketing to Parity Games as the project progresses.
The first VR-blockchain based game to come out from the project has already developed a strong buzz of excitement. “The Isolated City” is the first game to be launched and it is built on top of Unreal Engine 4. The game preview video had already received over 1 million views which indicates the excitement around this project.
Potential Negative Drivers
As Ontology is based in China, regulation is one of the largest concerns regarding the project.
China has a very rocky relationship with blockchain projects after the government had decided to ban ICOs from occurring in the country. If the government decides to continue its hawkish stance on cryptocurrency, this could lead to some severe delays in development for Ontology.
However, the company has already started to minimize the risk associated with running out of China. The company have already opened research centers in Japan, Korea and the United States. They also have plans to move into Europe in Q2 2019.
The Ontology team has also taken a further step in developing a relationship with the Chinese government. Last April, the team announced that they had met with Chinese government officials as they provided an overview of how Ontology technology could impact the real world economy.
— Ontology News (@Ontology_news) April 5, 2018
Ontology Price Analysis
Let us take a look at the ONT/USD market over the long term and highlight the key areas of resistance on the way up toward $5.00.
Ontology has recently broken above the 100-day moving average and became one of the first cryptocurrencies (In the top 20) to do so in 2019.
This has provided an important bullish signal that the previous bearish decline has started to show signs of slowing down. So long as ONT/USD can remain above the 100-day moving average, we can expect the market to continue to rise.
The first level of strong resistance for Ontology to break above is located at the bearish .236 Fibonacci Retracement level (drawn in green) priced at $1.61. This bearish Fibonacci Retracement level is measured from July 2018 high day close to the December 2018 low.
Above $1.61, the bulls will then need to break above the $2.00 level before attempting to break above the .382 and .5 Fibonacci Retracement levels (drawn in green), priced at $2.32 and $2.90 respectively.
If the buyers then continue to climb above $3.00, higher resistance can be expected at the .618 Fibonacci Retracement level at $3.48, followed by resistance at the $4.00 level.
ONT/USD will need to break above the .786 and .886 bearish Fibonacci Retracement levels at $4.30 and $4.79 before being able to complete the 300% price increase and reach the $5.00 level.
The journey to $5.00 will not be an easy one. However, the market has ample time to reach this level.
The main driving forces behind this rise will be the continued development of the Ontology network into a successful and competitive dapp platform. Furthermore, the ongoing established partnerships with companies such as MoveBloc will also play an important role as the project develops further.