ONT worth may sink to lows of $0.38 if bears break under main help areas close to $0.50
Ontology worth, as is with Bitcoin and different prime ten cryptocurrencies, is having a tough day.
On the time of writing, the ONT token is greater than 4% within the pink whereas Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) have misplaced between 2.5%—4%. The benchmark crypto buying and selling pair BTC/USD is now under $19,000, ETH/USD is struggling to interrupt above $580 and XRP is caught round $0.60.
For Ontology, the brief time period outlook suggests additional declines are potential, though a reversal may put bulls on track for one more leg up.
ONT has damaged under the decrease trendline of a just lately shaped descending triangle sample. The breakdown from the bearish continuation sample means that waning demand for ONT will doubtless see its worth dip even additional.
The technical outlook for Ontology additionally exhibits that the token’s worth has damaged under an important help space across the 20-day easy shifting common at $0.56.
With costs headed decrease past the horizontal trendline of the shrinking triangle sample, bears are eyeing $0.52 to strengthen their grip.
The every day relative energy index (RSI) helps this dreary perspective and exhibits that momentum is with the bears. On the time of writing, the indicator at present sits simply above 48 and is dipping.
ONT/USD every day chart. Supply: TradingView
If worth motion continues decrease previous the 50-SMA line at $0.51, an RSI within the oversold territory may see sellers goal $0.38.
The 4-hour chart additionally suggests a brief time period bearish continuation for ONT/USD. The worth has dipped under the help restrict of the declining triangle sample, with the RSI falling sharply in the direction of 30.
The MACD is under the zero line, highlighting the downturn for Ontology from highs of $0.62. For the time being, the token is buying and selling under the 50-SMA—a bearish sign.
ONT/USD worth on the 4-hour chart. Supply: TradingView
Whereas the technical image suggests ONT/USD may tank to $0.38, it’s value noting that there’s a chance of a ‘pretend out’ with the descending triangle. What this implies is that Ontology may dip to lows of $0.38 just for a large reversal to see the worth balloon to a brand new excessive.
The fast outlook additionally suggests a possible drop to $0.50 adopted by an aggressive ‘purchase the dip’ interval. On this case, ONT/USD may maintain above $0.50.
If this occurs, patrons will goal a retest of the resistance space close to the higher trendline, after which on the 20-SMA ($0.56) and 61.8% Fibonacci stage ($0.60). Above the Fib stage, bulls may have respectable targets at $0.70 after which at $0.83.