Ontology has seen a small 4.36% price drop over the past 7 rolling trading days. The Ontology token is currently exchanging hands at a price of $1.92 after the ONT/USD market suffered a further 21.09% price decline over the past 30 trading days.
The RSI technical indicator is currently producing neutral readings but will the bulls eventually push price action above $3 soon?
The cryptocurrency dedicated toward trust collaboration is currently ranked 27th in terms of overall market cap across the entire industry. It has a total market cap value of $353 million after the 7-month old coin experienced a precipitous 58% price fall over the past 90 trading days.
Ontology is currently trading at a value that is 82% lower than its all-time high price.
Let’s start by looking at the long-term price action for ONT/USD.
Ontology Price Analysis
ONT/USD – LONG TERM – DAILY CHART
Ontology has had a relatively tough 5 months of consistently declining prices. However, the market has reached some form of stabilization over the past 6 or 7 weeks, which may give many investors hope that greener pastures (and candles) are ahead.
Analyzing the market over the long-term, we can see that ONT/USD had experienced an unprecedented bullish run during April 2018 when price action started from a low around $0.98 on March 18, 2018 and continued to rise until reaching the all-time high (ATH) price at $12.36 on May 3, 2018. This bull run totaled a price increase of over 1,000% from low to high.
After reaching the ATH price, the market began to decline quite rapidly. It had originally found support above the .618 Fibonacci Retracement level priced at $5.31 during May and June 2018. This Fibonacci Retracement is measured from the bullish wave seen during April 2018.
However, the bearish sentiment proved to be overpowering for the bulls as the market continued to drop further lower.
We can see that price action for ONT/USD has recently found support at the initial starting price of the overall April 2018 bullish run, completing a 100% Fibonacci Retracement level. It is also important to highlight that this area of support was further increased by a downside 1.414 Fibonacci Extension level (drawn in red) priced at $1.05.
After rebounding from this support level, price action is now currently trading just below the $2 handle at $1.92.
Let’s now analyze price action for ONT/USD over the short term and look at any potential support and resistance zones.
ONT/USD – SHORT TERM – DAILY CHART
Analyzing the market from the short-term perspective we can see that the support found at $1.05 was further reinforced by another shorter-term downside 1.618 Fibonacci Extension level priced at $1.09. This combined area of significantly strong support allowed the market to rebound and rally.
Price action has not yet since broken below the $1.50 handle after the rebound.
We can see that over the past 2 months, the market has been trading in a period of consolidation and has established a trading pattern known as a triangle. The upper and lower boundaries form an area of resistance and support (respectively) as the market approaches the apex of the triangle where a breakout is expected either to the upside or downside.
At this moment in time, the RSI technical indicator is producing a neutral reading as it trades along the 50 handle. This indicates that neither the bulls nor the bears are in possession of the momentum within the market.
If the bulls can regain control of the momentum in the market and push price action above the upper boundary of the triangle, we can expect immediate resistance to be located at the short-term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $2.1194.
This area of resistance also contains the longer-term 1.272 Fibonacci Extension (drawn in red), further bolstering the expected resistance here.
If the market continues above, we can locate resistance higher at the .886 Fibonacci Retracement level priced at $2.288, followed by the 100-day moving average which currently is hovering around the $2.70 handle.
Alternatively, if the bears push the ONT/USD market below the lower boundary of the triangle, we can expect immediate support located below at the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $1.6971. If the bearish action continues further lower, we can then expect further significant support at the previous long-term combined support level around the $1.05 handle.
The RSI indicator will have an important role in signalling which direction the breakout may be toward. If the RSI can break above the 50 handle, it will indicate that the bulls are gaining control of the momentum. Therefore we would expect a bullish breakout of the triangle.
Let us continue to analyze price action relative to Bitcoin over the long term for Ontology.
ONT/BTC – LONG TERM – DAILY CHART
Analyzing the ONT/BTC market above from the long-term perspective, we can see that ONT/BTC had experienced a bullish run as price action started from a low of 1,364 SATS on March 18, 2018 and continued to rise to a high of 12,460 SATS on May 3, 2018. This was a price increase totaling 775%.
Similar to the ONT/USD market, we can see that the ONT/BTC market tumbled after reaching the ATH price. Price action had recently found some support at the downside 1.618 Fibonacci Extension level priced at 1,949 SATS in August 2018. This level of support was sufficient enough to cause the market to rebound.
We can see that the ONT/BTC market has also been trading sideways since the rebound and has established a triangular trading pattern. We can also see that along with the triangle, the ONT/BTC market has been in a narrow range between 3,172 SATS and 2,673 SATS.
If the bulls can push price action above the upper boundary of the triangle and trading range, we can expect immediate resistance higher to be located at the .786 Fibonacci Retracement handle around 3,782 SATS. The region between 3,782 – 4,023 SATS will require significant momentum to overcome due to the combined level of resistance expected in this region.
If the bulls can push the market above the 4,023 SATS handle, then we can expect immediate significant resistance higher at the .618 Fibonacci Retracement level priced at 5645 SATS.
Alternatively, if the bears push price action below the lower boundary of the triangle, we can expect immediate support below at the previous downside 1.618 Fibonacci Extension level priced at 1,949 SATS.