Ocean Protocol (OCEAN) has been decreasing since reaching an all-time high price on Aug 18.
It’s expected to fall towards support levels before possibly making another attempt at a new all-time high.
OCEAN Upward Move Stalls
OCEAN has been increasing since June 26, when it reached a low of 730 satoshis. The upward move accelerated at the end of July, culminating with an all-time high price of 6,071 satoshis on Aug 18. However, the price created a shooting star candlestick and has been decreasing since.
The decrease was preceded by bearish divergence in both the RSI and the MACD, the latter of which has crossed into negative territory.
The main support and resistance areas are found at 3,600 and 5,100 satoshis, respectively. The price is expected to fall towards the support area, which might cause a slight bounce back to the upside.
Cryptocurrency trader @TheEurosniper stated that the OCEAN price could decrease towards 4,000 satoshis before eventually moving upwards and reaching a new all-time high.
This fits with the analysis above. However, we need to take a look at the longer-term movement and outline a wave count in order to determine if OCEAN will likely reach a new all-time high price in the near future.
Wave Count
The OCEAN price seems to have begun an impulsive formation at the beginning of last August. The increase accelerated on March 13 of this year, indicating that it has begun an extended wave 3 (in black below), of a five-wave formation (blue).
If this is correct, then the price is now likely in the fourth wave, which could end between the 0.5-0.618 Fib level of wave 3, found between 2,591 and 3,191 satoshis.
The increasing volume during the top of the wave relative to the previous high makes it likely that the upward move has not ended, but only cooling off.
To conclude, the OCEAN price is expected to correct towards 3,000 satoshis before beginning an upward move towards a new all-time high price.
Bitrue