The Ontology (ONT) price is approaching a crucial support level, which will likely reverse the prevailing bearish trend.
While technical indicators do not yet confirm the reversal, they suggest that a bottom is close.
ONT Approaches Support
The ONT price has been declining since it reached a high of $1 on Aug 21. While the price has bounced at several levels, it has failed to initiate a significant upward move.
On Oct 17, ONT fell below the 0.618 Fib level of the entire move at $0.51 and has been falling at an accelerated rate since.
The closest support area is found near $0.38, the 0.786 Fib level of the move, while the $0.51 area is now expected to act as resistance.
Cryptocurrency trader @TheEurosniper outlined an ONT chart, which shows the price nearing the bottom of its range from 2018. He predicts another drop before the price theoretically resumes its upward movement.
The bottom of the range is at $0.42, and the price has fallen slightly below it. A decline below the range would take ONT right to the previously outlined $0.38 area, from where the price could potentially reverse its bearish trend and move higher, with a first target at $0.51.
Technical indicators show extremely oversold conditions but do not give any indication that a counter-rally will occur.
While the RSI and MACD are deeply oversold, neither has generated any bullish divergence. Furthermore, the Stochastic Oscillator has made a bearish cross, a sign that the trend is still bearish.
Short-term technical indicators are more bullish. There is a pronounced bullish divergence in both the RSI and MACD, more clearly visible in the former.
Therefore, it’s likely that the price will soon reverse its descent after another possible drop that would take it to the previous support area.
ONT’s wave count suggests that the price has been completing an A-B-C corrective structure (shown in black below) since reaching the previous Aug 1 high. If so, the price is in the fifth and final sub-wave (blue) of the C wave.
This would fit with the possibility that the price falls once more towards $0.38 before eventually moving upwards.
To conclude, the ONT price should soon reverse its bearish trend. The previous support area near $0.38 is a likely place for a bottom.
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