The Ocean Protocol (OCEAN) price is in the process of validating an important area as support. As long as the price is trading above this level, the trend is considered bullish.
On the contrary, the OCEAN/BTC pair looks bearish unless it can break out above a descending resistance line that’s been holding it back.
OCEAN Retests Breakout Level
OCEAN has been putting in higher highs since Oct 7, when the price reached a low of $0.239. Throughout this period, the price has been following an ascending support line.
After breaking out from the $0.415 resistance area on Oct 24, the price proceeded to reach a high of $0.582, before pulling back.
Currently, the price is in the process of re-testing the $0.415 area, possibly to validate it as support. This area also coincides with the ascending support line, making it more likely to initiate a bounce.
Despite this, technical indicators are neutral/bearish. While the MACD line and histogram are above 0, the RSI is below 50 and the Stochastic oscillator has made a bearish cross.
As long as the price is trading above the $0.415 area and the ascending support line, its movement is more likely to be bullish.
If the price begins moving upwards, the closest resistance areas are found at $0.57 and $0.67, the 0.786 and 1 Fib levels of the previous decrease.
Cryptocurrency trader @TheEurosniper outlined an OCEAN chart, which shows a potential scenario in which the price breaks out from a descending resistance line and moves higher.
Since the tweet, the price was rejected by the 3,900 satoshi area and descending resistance line, and has dropped sharply. Until the price breaks out from this resistance zone, the trend is considered bearish.
The closest support area is found at 2,350 satoshis.
To conclude, while the OCEAN/USD trend looks bullish, OCEAN/BTC is likely to continue decreasing for a bit longer.
Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto.