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Ontology Coin Could be Heading Towards a New All-Time High After the Formation of the Double Bottom

Ontology Coin Could be Heading Towards a New All-Time High After the Formation of the Double Bottom

Published: January 5th, 2021

Weekly chart

ONT/USDT Weekly Technical Analysis 5 Jan 2021

On the weekly chart, we can observe the big picture of the ONT/USDT price action. It can be seen that back in June 2020, the price broke above the downtrend trendline, although it was stopped near the previous area of resistance, which is a $1.00 strong psychological level. At the same time price cleanly bounced off the 78.6% Fibonacci retracement level at $0.90, resulting in a trend reversal. Price declined back to 23.6% Fibs at $0.42, where the double bottom has been formed.

This could be the first indication that the trend might actually start reversing, considering the fact that the long-term downtrend trendline was already penetrated and Fibonacci support rejected. Overall, this could be the beginning of a new bullish cycle, which at the end might send the price to new all-time highs. To remind you, the current all-time high is near $11.00.

Nonetheless, the first price must break above the $1.00 psychological level, in order to confirm a strong bullish trend. Before that, Ontology is expected to rise towards the $0.80, which is a previously formed strong supply/demand zone.

Daily chart

ONT/USDT Daily Technical Analysis 5 Jan 2021

On the daily timeframe, it can be seen that there is a strong support area formed near $0.40, which previously acted as the supply/demand zone. Back in November, this support got rejected, after which the price went up and broke above the 200 Exponential Moving Average as well as the downtrend trenldine. The correction down took place, where ONT/USDT formed a double bottom near $0.40 and rejected the downtrend trendline.

At the same time, it can be seen, that 327.2% Fibs at $0.42 was also rejected cleanly back in October. Spikes were produced lower, but the price failed to close below the spikes, indicating the validity of this Fibonacci support. A few days ago 327.2% Fibs was rejected cleanly, and yet another Fibs was applied to this rejection. It shows that 427.2% Fibs at $0.79 almost exactly corresponds to the previously mentioned $0.80 supply/demand area. This makes it a very strong and the closest upside target as well as the key resistance in the medium term.

16-hour chart

ONT/USDT 16-hour Technical Analysis 5 Jan 2021

While the price has produced a double bottom, it is still trading within the major descending channel. However, it can be seen that recently price broke above the minor descending channel as well as above the 200 EMA. Perhaps this is yet another bullish sign for ONT/USDT, but only as long as the price remains above $0.40 psychological support. As long as this is the case, ONT is most likely to test the resistance at $0.80.

4-hour chart

ONT/USDT 4-hour Technical Analysis 5 Jan 2021

On the 4-hour chart, yet another downtrend trendline was penetrated. After the breakout, the price went down and cleanly rejected the 61.8% Fibonacci retracement level at $0.4188. Also, the downtrend trendline as well as the support, and the 50 Simple Moving Average got rejected as well.

This goes to shows, that $0.42 support is being strongly defended by buyers, and as long as the price remains above it, ONT/USD could potentially rise by over 50% in the medium to short term future.

1-hour chart

ONT/USDT 1-hour Technical Analysis 5 Jan 2021

The hourly chart shows, that the uptrend trendline is being respected multiple times along with the 200 Exponential Moving average. Price is starting to produce higher highs and higher lows pattern. All the facts in this analysis suggest a strong bullish trend on lower timeframes and an emerging long-term bullish cycle for the Ontology coin. It is very important that the price will remains above the $0.40 - 0.42 support or demand area, for the strong rally to take place.

Summary

The ONT/USDT price clearly shows a strong buying pressure in the most recent price action. This could be either a fast move to the upside of approximately 50%, or it could be the beginning of a long-term bull cycle, resulting in a price increase towards a new all-time high.

Upside targets

As per the weekly and daily chart, the key resistance area is located between $0.8 and $1.00. Clearly, the technical resistance is at $0.8, while the psychological is at $1.00.

Probability of a downtrend

Break below the $0.40 support area will immediately invalidate the bullish forecast. In this case, the downtrend can be expected to continue, which is likely to send the price down to the all-time low support area, which is near $0.20.

Support: 0.42, 0.40

Resistance: 0.80, 1.00

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