Trade Recommendation: Ontology (ONT)
Ontology (ONT/BTC) may look extremely bearish after recording fresh 2019 lows of 0.0001232 on June 28th. However, that exact sentiment tells us that the cryptocurrency may be at the point of maximum financial opportunity. The market just needs to recover a critical support area and it should be ready for a solid bounce.
Technical analysis shows that ONT/BTC is in the midst of pulling off a Wyckoff spring as bulls are working hard to reclaim key support of 0.000134. A look at the daily chart shows that this support has been intact since March 2018. This makes us believe that the recent move below 0.000134 can be considered a deviation.
The good news is that technical indicators support our bullish bias. The daily RSI is showing signs of reversal as it flashes a bullish divergence while hovering close to oversold conditions. In addition, volume is starting to show signs of life. A significant volume uptick in the next few days should help Ontology recover 0.000134 and rally to our targets.
The strategy is to buy once ONT/BTC recovers 0.000134. If bulls can stay above this level, the market will likely rally to our targets of 0.00019 and 0.00026. Keep in mind, springs or bear traps tend to provide the fuel that enable a market to reach the range resistance.
The process may take less than a month.
Daily Chart of Ontology/Bitcoin on Binance
Summary of Strategy
Buy: As soon as the market recovers 0.000134.
Targets: 0.00019 and 0.00026
Stop: 0.000128
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.
