Ontology (ONT) is a high-performance blockchain platform which supports multiple public chains which can coexist and interact with one another.
The official ONT coin was listed on Binance in March of this year and quickly sank to $1.25. Between the months of April and May, when Bitcoin (BTC) made a huge bounce from $6,600 to $9,900, ONT made a massive climb to an all-time high of $12.25.ONT has not seen much green since May as the price has tumbled back to a new all-time low today of $0.61 — a 94 percent loss from its all-time high. Click To Tweet
The coin is currently ranked 27th with a total market cap of $187 million.
Taking a look at the three-day and two-week RSI, we can see ONT is near the mid-range and will most likely continue to move back to the oversold range between 0 and 20.
This move will most likely carry ONT back to the bottom support of the descending channel in the area of $0.60 before it is able to claw its way back to $0.75.
On Nov 14, ONT touched the descending resistance line (pink top) and caused the price to plummet through the support level of the previous low (orange) at $1.25 before crashing to the bottom descending support line (pink bottom) today at $0.60 before a slight bounce to $0.63.
If ONT mimics the price movement of the previous cycle going from descending resistance to descending support, it could be ready to make a significant bounce to the upside, potentially in the range of $1 before falling back.
If this is the case, ONT would most likely find stable support in the $0.75 to $0.80 range (red) in the next few months.
It is still too early to tell if the next time ONT reaches the descending resistance will cause another drop or if it finally has the power to break out of the downward trend.
Short-term traders might look to score on a potential incoming bounce, and should be prepared for all situations by setting appropriate stop-losses and sell signals.
Do you think ONT is near its bottom? Will ONT be able to make new all-time highs in 2019? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold ONT.