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.
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.
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