Will Ocean Protocol Break Down Below Long-Term Support?

OCEAN was launched at the beginning of May, therefore, there is not an abundance of data points which can be used to make future price predictions. On Jan 8, BeInCrypto published an article outlining the top-five cryptocurrency projects to keep an eye on in 2020:

• QNT
• OCEAN
• XTZ
• DAG
• FCT

In this article, the second in a five-part series, we will take a closer look at Ocean Protocol, and go over a few possible scenarios for its future movement.

Here Are the Five Blockchain Projects to Keep an Eye on in 2020.$QNT $OCEAN $XTZ $DAG $FCT@quant_network @oceanprotocol @tezos @Conste11ation @factomhttps://t.co/TNRaVCHgcq

— BeInCrypto (@beincrypto) January 8, 2020

OCEAN Ascending Support Line

OCEAN was initially launched in May 2019, so there is only slightly more than six months of data that can be used to make a prediction on the future price movement. There have been three descending resistance lines until now, two of which have been broken. The third resistance line was created once the price reached an all-time high of 655 satoshis on Dec 18 and is still in place. In addition, the price has been following an ascending support line since August which has been validated three times. At the time of publishing, the price is hovering slightly above this ascending support line.

Fibonacci Level

The three current upward movements and their following retracements were finished once the price reached the 0.786 Fibonacci level. This has occurred twice, on Oct 28 and Dec 2, 2019. In addition, these lows have coincided with the ascending support line. Measuring the current upward move, the 0.786 fib level is at 337 satoshis and will coincide with the ascending support line on Jan 20, 2020. Therefore, judging by the previous movement, a reversal from this level would be expected.

Future Movement

Both times the price dipped below the 100-day moving average (MA) and touched the support line, it initiated a strong upward move. A decrease to the aforementioned 0.786 fib level at 337 satoshis would also constitute a decrease below the 100-day MA and a touch of the support line. If the price begins another upward move, it could reach a high of 750 satoshis, creating an ascending resistance line and an ascending channel. To conclude, the OCEAN price is likely to reach a bottom near 337 satoshis by the end of January.  The ensuing upward move could take the price to an all-time high of 750 satoshis.