Cryptocurrency Ontology (ONT) is approaching an important resistance level, which may lead to a reversal of the bearish trend
Technical indicators do not yet confirm the reversal, but they signal that the bottom is already close
Equalization for support
The ONT rate is declining from the high of $1 reached on August 21. Despite several attempts to rebound, the price has not been able to develop a more distinct upward momentum.
On October 17, the cryptocurrency fell below the 0.618% Fibonacci retracement level at $0.51 and has been declining at an accelerated pace ever since.
The nearest support is near $0.38, where the 0.786% Fibonacci retracement level is located, while the $0.51 mark acts as a resistance.
ONT chart from TradingView
Cryptocurrency Trader @TheEurosniper shared on Twitter the ONT chart, which notes that the price is approaching the base of the 2018 range. The trader predicts another wave of decline before resuming growth.
The base of the range is at $0.42, which the price has lost. Going lower under the range will send quotes to the $0.38 zone, where a bearish trend reversal may occur, followed by growth and an initial target of $0.51.
ONT chart from TradingView
Technical indicators
Technical indicators point to excessive oversold conditions, but so far they do not presage the realization of a rally.
The RSI and the MACD are in the oversold zone, but none of the indicators signals a bullish divergence.
Moreover, the stochastic oscillator has formed a bearish intersection, which indicates the presence of a bearish trend.
ONT chart from TradingView
Short-term technical indicators look somewhat better. The RSI and the MACD give strong signals of bullish divergence, which are more clearly seen in the case of the relative strength index.
Thus, the quotes may soon make a reversal, but after another wave of decline, which will send the coin to the above support.
ONT chart from TradingView
Wave analysis
The wave analysis suggests that the price completes the A-B-C correction pattern (black color on the chart below) after reaching the maximum on August 1. If so, then now the cryptocurrency is on the final, fifth sub-wave (blue color) of the C wave.
This scenario is linked to the forecast, which assumes a return to the $0.38 mark with a subsequent reversal.
ONT chart from TradingView
Conclusion
So, ONT should soon reverse the bearish trend after the formation of the bottom in the area of the important support of $0.38.
Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this forecast does not reflect
Disclaimer
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