Trade Recommendation: Ontology

Ontology (ONT/BTC) is a market that’s getting ready for its next move up. It breached resistance of 0.00025 on March 13, 2019. This triggered the breakout from a rounding bottom pattern. The breakout ignited a rally to as high as on 0.0003488 March 21.

At that point, the market was showing signs of bullish exhaustion. We saw a bearish divergence on the daily RSI. In addition to that, Ontology was already trading in overbought territory. As a result, the market lost its steam and failed to take out resistance of 0.00034. With Ontology correcting, it offers the opportunity to buy on dips.

Technical analysis shows that ONT/BTC is flipping resistance of 0.00025 into support. This view comes after the market refused to break below 0.00025 on April 11. Bears tried to push Ontology below the support again on April 12 but bulls fought back and preserved 0.00025.

With this price action, a bounce appears to be on the horizon. Technical indicators affirm this bias. Volume has been on a decline ever since the breakout rally faded on March 21. On top of that, the daily RSI is trading near oversold conditions. The expected selling relief at a high demand area can be our catalyst for the bounce.

The strategy is to buy as close to 0.00025 support as possible. If bulls can stay above this level, the market will likely rally to our targets of 0.00034 and 0.000435.

The process may take less than a month.

Daily Chart of Ontology/Bitcoin on Binance

As of this writing, the Ontology/Bitcoin pair is trading at 0.0002621 on Binance.

Summary of Strategy

Buy: As close to 0.00025 as possible.

Targets: 0.00034 and 0.000435.

Stop: 0.00024

 

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.