Ontology / USD Technical Analysis: Reaching Apogee
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- Ontology has a strong bullish outlook over the short-term
- The four-hour time frame shows that a bullish inverted head and shoulders pattern is currently in play
- Indicators on both time frames continue to generate strong buy signal
Ontology / USD Short-term price analysis
Ontology has a strong bullish outlook over the short-term, with the ONT / USD pair advancing towards levels not seen since November of last year.
A bullish inverted head and shoulders pattern is currently in play across the four-hour time frame, with the upside target of the pattern found close to the November 14th trading high.
Technical indicators on the four-hour time frame remain bullish and show scope for further upside in the near-term.
ONT / USD H4 Chart (Source: TradingView)
Pattern Watch
The bullish inverted head and shoulders pattern on the four-hour time frames remains the dominant theme to watch over the short-term.
Relative Strength Index
The RSI indicator is bullish on the four-hour time frame, although it is trading in extremely overbought territory.
MACD Indicator
The MACD indicator is bullish and is generating a strong buy signal on the mentioned time frame.
Fundamental Analysis
There have been no announcements today that would explain the price spike, but ONT appears to continue its bullish trend, started last month. This indicates that investor excitement may be supported by the partnerships that have been announced over the past few months.
ONT / USD Medium-term price analysis
Ontology has a bullish outlook over the medium-term, with the ONT / USD pair continuing to move away from its trend defining 200-day moving average.
The bullish inverted head and shoulders pattern on the daily time frame has reached its bullish objective, while the presence of bullish MACD divergence has now been eradicated on the mentioned time frame.
Technical indicators remain bullish on the daily time frame, although the RSI indicator is starting to appear slightly overstretched.
ONT / USD Daily Chart (Source: TradingView)
Pattern Watch
The daily time frame shows that a much larger inverted head and shoulders pattern will take shape if the latest advance reaches the August 29th trading high.
MACD Indicator
The MACD indicator on the daily time frame is bullish and is currently generating a buy signal.
Relative Strength Index
The Relative Strength Index is bullish on the daily time, although it has moved into overbought territory.
Fundamental Analysis
The medium-term price growth will be supported by the development of partnerships. ONT has already surpassed NEO and ETC by market cap and is gradually gaining momentum. The successful integration of Ontology into its partners’ businesses could further drive the value of the project.
Conclusion
Ontology is bullish over both time horizons, with the inverted head and shoulders pattern on the four-hour time frame highlighting that the ONT / USD pair still has scope to trade even higher in the near-term.
Technical indicators on the daily time frame are becoming slightly overstretched, which could signal a potential technical correction once the pattern on the four-hour time frame reaches its overall upside objective.
For an introductory course on the project check out our coin guide for Ontology here.
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