The price K-chart of the Ontology (ONT) highlights the bearish trend. Sellers appear to be dominant, steering the downtrend below the dynamic resistance trend line. At the same time, alt seems vulnerable to a continuation to the downside unless the downtrend line remains intact. However, the proprietorship bulls are retesting resistance at $0.455 in hopes of a bullish breakout.
ONT bulls tried to defend the July 2021 bottom support level of $0.556 in the second week of January. Nevertheless, the latest panic sell-off in the cryptocurrency world sent the cryptocurrency plunging to its annual support level of $0.4.
The bulls immediately ramped up and Ontology rallied to its nearest resistance level near $0.55. The V-shaped recovery has sent ONT up 40% in the last two weeks.
Downtrend line implies a 28% drop in ONT
Currently, ONT/USDT is encountering resistance at the downtrend line of $0.55 and the 20-day exponential moving average. This trendline has been fueling bearish sentiment since mid-December 2021. As a result, the cryptocurrency could fall 28% to explore the $0.4 level, while selling pressure strengthens around the $0.55 area.
Meanwhile, bulls overcoming the overhead hurdle could see ONT spike to $0.80. At the time of this posting, ONT was changing hands at around $0.55 after rising 11.64% intraday. In addition, the daily trading volume changed to $225.7 million, a decline of 543.5%. ONT currently ranks 129th after its market cap rose 14.86% to $486.9 million (Coinmarketcap data).
ONT technical price K-chart showing bearish alignment of the key moving averages (20-, 50-, 100- and 200-). These MAs may act as resistance in a bullish rally. At the same time, the Moving Average Convergence Dispersion (MACD) shows a bullish crossover with the signal line, indicating a buy signal. In addition, the histogram highlights an upcoming green bar, indicating that the bulls are gaining momentum.
Nevertheless, the broader market has been in the green since yesterday. Bitcoin hit a weekly high after breaking the $41,000 mark. At the time of publishing this article, BTC was trading at $41,629. The cryptocurrency market rallied as Amazon stock rose after the opening bell on Wall Street. In addition, the Nasdaq Index pushed the cryptocurrency industry on an upward trend with a 2% gain.
ONT Life Value
- Resistance zone – $0.56, $0.65.
- Support area – $0.50, $4.