Perhaps Ontology Coin is Getting Ready for a Massive Uptrend

Perhaps Ontology Coin is Getting Ready for a Massive Uptrend

Published: December 25th, 2020

Weekly chart

ONT/USDT Weekly Technical Analysis 25 Dec 2020

The weekly chart goes to show where the key support level has been forming since December 2019. It is clearly visible that the support area is located near $0.42, which recently got rejected twice. However, back in March, there was a break and close below this level, where ONT/USDT has tested the $0.21 low. Nonetheless, the price slowly but steadily recovered and found the resistance near a key psychological level at $1.00.

And yet again, since September price has been steadily declining although the $0.42 support has been rejected twice already. Probably there are two important factors that might indicate that the trend is turning from bearish to bullish. The first is obviously the break above the downtrend trendline. The second is the double rejection of the 23.6% Fibonacci retracement level at $0.43. It seems like the double bottom has been formed, which might result in a strong uptrend in the coming days or weeks for ONT/USDT.

Based on the 50% Fibonacci retracement level at $0.65, it could be the first important resistance, and the nearest upside target should the uptrend take place. However, the upside potential will become huge, if this resistance will get penetrated, in which case, the long-term uptrend is likely to be confirmed.

Daily chart

ONT/USDT Daily Technical Analysis 25 Dec 2020

On the daily chart, the support area is visible more clearly. It is located between $0.40 and $0.43. The lowe, at $0.34, produced a couple of days ago could be now playing a key role in further price development. Because as long as price stays above, buyers are likely to stay in control of Ontology price.

The previously mentioned resistance at $0.65 is now confirmed by two Fibs. One is the 50% retracement level as per the weekly chart, and another one is the 88.6% Fibs applied to the last wave up, which occurred back in August this year. At the same time, the break and close above the downtrend trendline, and the double bottom formation, strongly favors the beginning of an uptrend.

16-Hour chart

ONT/USDT 16-Hour Technical Analysis 25 Dec 2020

Price still remains within the major descending channel, where there was a rejection of the top of the channel at the end of November. Considering the fact that the new lower low has been produced but without the clear break and close below of the previous support, the Ontology trend reversal is likely to take place. This should push the price up to the top of the channel, which yet again corresponds to the $0.65 resistance area.

Besides, When the price tested the $0.34, there was a very precise rejection of the upper trendline of the minor descending channel. This might suggest that the bottom has been finally tested and now the only direction for ONT/USDT is up.

Another point is that yet another Fibonacci retracement level is confirming the $0.65 being a key resistance. This is the 78.6% Fibs applied to the last move down, which makes it now 3 different Fibonacci levels pointing out to the same resistance area.

4-Hour chart

ONT/USDT 4-Hour Technical Analysis 25 Dec 2020

On the 4-hour chart, ONT has tested and rejected the bottom of the descending channel. After that price went up and broke above the 20 Exponential Moving Average. The current correction seems to be ending, considering the clean rejection of the support downtrend trenldine and the middle trendline of the descending chanel. It certainly looks like this could be the very beginning of a strong rally.

1-Hour chart

ONT/USDT 1-Hour Technical Analysis 25 Dec 2020

On the hourly chart price broke above the simple downtrend trendline. Straight after, a small pullback followed. Right now price is rejecting the 50 Simple Moving Average along with the 23.6% Fibonacci retracement level at $0.44. This could be the price of interest for buyers, from where the uptrend might start.

But, there are several scenarios that also should be expected as long as ONT/USDT remains above the $0.34 low. Price can potentially correct further down, event towards the lowest support at $0.35, which is 88.6% Fibs. As can be seen, all these scenarios still imply an uptrend.

Summary

The Ontology coin has been trending down for a very extended period of time. But now, multiple timeframe analysis shows that there is a potential for the beginning of a long-term uptrend. Obviously, this scenario can only play out if $0.34 support will remain to be respected.

Upside targets

As per the weekly, daily, and 16-hour chart, the are 3 different Fibonacci retracement indicators pointing out the same resistance level. This level is located at $0.65 and could be the nearest key supply area.

Probability of a downtrend

As per the daily chart, the key support area is located near $0.42. Although the price has managed to produce a spike below, hitting the $0.34 level. As long as this low is being respected, the probability of an uptrend is very high. Although break below $0.34 will immediately invalidate the bullish forecast and ONT/USD can be expected to move towards the $0.21 support area.

Support: 0.44, 0.40, 0.39, 0.35, 0.34

Resistance: 0.47, 0.50, 0.60, 0.65

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