Ontology Leads the Market as the First Bullish Mover Within the Industry

Ontology has seen a 7.18% increase in price over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price of $2.53 per token after the cryptocurrency has seen a total of a 7.40% price hike over the past 7 trading days.

Ontology is the cryptocurrency that was released by the same company that released the Chinese cryptocurrency, Neo. It was launched on the 18th of MArch 2018, making it a mere 6 months old. The company behind it is the Shanghai based research and development company called OnChain.

Ontology is a cryptocurrency that intends to connect all businesses, governments and users on the blockchain through their Distributed Network Architecture (DNA) framework. This will allow an ecosystem to grow that consists of private blockchains that will allow data exchange for services such as verification, reputation management, collaboration and much more.

The technology relies on a distributed trust collaboration platform which allows for users to trust each other through technology. This removes the worry that businesses may have with each other about the quantity and quality of any products or services they may be attaining. Perhaps one of the main driving points for Ontology is the fact of its simplicity. It is designed so any user, even if they have never used a blockchain, can use their network through just a few clicks.

Ontology is currently ranked in 23rd position in terms of overall market cap across the entire industry. It has a total market cap value of $405 million after suffering a 24% price decline over the past 30 days of trading. The cryptocurrency, although it has seen some recent gains, still has many losses to regain after losing over 56% over the past 90 trading days.

Let us continue to analyse price action for Ontology over the long term.

Price Analysis

ONT/USD – LONG TERM – DAILY CHART

ontology aug 2018

Analysing price action over the lifetime market perspective above, we can see that Ontology had underwent a bullish run throughout April 2018 as price action started at a low of $0.98 on the 18th of March 2018 and extended to an all time high priced at $12.30 on the 3rd of May 2018. This was a price increase totalling over 1000% from low to high.

We can see that after placing the all time high, price action began to roll over and decline quickly. It had found some form of support at the .618 Fibonacci Retracement priced at $5.31 during May and June. This Fibonacci Retracement is measured from the entire bullish run outline above.

Price action continued to decline throughout July until reaching further support below at the the .786 Fibonacci Retracement priced at $3.41. As August began to trade, Ontology was not immune to the overall industry bloodbath as it fell further to complete a 100% Fibonacci Retracement from the entire bullish run outline above. We can see that this area of support was also bolstered by a downside 1.414 Fibonacci Extension level priced at $1.05. This combined support was significant enough to propel the market to create higher highs and begin to rally.

Let us analyse price action from a closer perspective to highlight any potential support and resistance zones.

ONT/USD – SHORT TERM – DAILY CHART

ontology aug 2018 2

Analysing price action from the short term, it is apparent that the support area highlighted around $1.05 was further bolstered by another shorter termed downside 1.618 Fibonacci Extension level (drawn in blue) priced at $1.09.

We can see that price action rebounded from this area of support as it started from a low of $1.02 on the 14th of August 2018 and extended to a high of $2.88 on the 18th of August 2018. This totalled to a 170% price increase over the short 4 days. We can see that the the market had reached resistance at a short term 1.618 Fibonacci Extension level (drawn in red) priced at $2.90 and rolled over.

The market is currently trading at resistance marked by the 1.272 Fibonacci EXtension level priced at $2.51. If the market can continue higher, we expect further resistance at the previous 1.618 Fibonacci Extension level priced at $2.90. Further resistance above this level can be expected at the previous long term .786 Fibonacci Retracement level priced at $3.41. This area of resistance will require significant momentum to overcome due to the 100 day moving average being closely located in this area.

Alternatively, if the bears re-enter the market and push price action lower, we expect immediate support to be located at the short term downside 1.272 Fibonacci Extension level (drawn in blue) priced at $2.11. Further support is expected at the downside 1.414 and 1.618 Fibonacci Extension levels priced at $1.69 and $1.09, respectively.

The technical indicators are currently starting to favour the bulls within the market. The RSI has risen from extreme oversold conditions to break above the 50 handle recently. This indicates that the bullish momentum has been slowly gathering traction as the previous bearish momentum shows signs of failure. If the RSI can continue to remain above the 50 handle we can expect the bullish pressure to continue.

Similarly, the moving averages have recently shown signs that is promising toward the bulls. The 7 day EMA (blue moving average) had recently crossed above the 21 day EMA (purple moving average) to signal a bullish crossover signal within the market. If these moving averages can continue to diverge away from one another we can expect this small bullish run recently experienced to continue further.

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