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Ontology / USD Technical Analysis: Room For Improvement

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  • Ontology has turned bullish in the short-term and is close to negating a bearish head and shoulder pattern
  • ONT / USD remains bearish in the medium-term with the pair still consolidating inside a price channel
  • The cryptocurrency shows substantial bullish MACD divergence on the daily time frame

Ontology / USD Short-term price analysis

 

In the short-term, Ontology is bullish with the recent rally in the pair almost negating a bearish head and shoulders pattern.

Furthermore, price is now trading close to the neckline of a bullish inverted head and shoulders pattern, which if triggered would further accelerate buying interest in the cryptocurrency.

Technical indicators on the four-hour time frame are bullish and show scope for further upside in the near-term.

 

 

ONT / USD H4 Chart                                                                         (Source: TradingView)

 

 

Pattern Watch

The invalidation of the head and shoulders pattern and the potential triggering of a bullish inverted head and shoulders pattern are the dominant themes to watch over the short-term.

 

Relative Strength Index

The RSI indicator is bullish on the four-hour time frame and continues to rise.

 

MACD Indicator

The MACD indicator is bullish with no price divergence and shows further scope for the pair to trade higher.


ONT / USD Medium-term price analysis

 

Ontology is bullish in the medium-term, although the cryptocurrency shows upside potentials as the ONT / USD pair is edging closer to a bullish breakout from a price channel on the daily time frame.

Despite the strong rally in the pair, Ontology would need to almost double its current market capitalization from current trading levels in order to reach its 200-day moving average.

However, bullish MACD price divergence is prevalent on the daily time frame, which could provoke a further rally towards parity for the ONT / USD pair.

 

 

ONT / USD Daily Chart                                                                         (Source: TradingView)

 

 

Pattern Watch

A break above the price channel should confirm a major technical breakout on the daily time frame, which could easily spark a rally in the ONT / USD pair towards parity.

 

MACD Indicator

The MACD indicator on the daily time frame is resoundingly bullish and shows scope for significant upside over the medium-term.

 

RSI Indicator

The Relative Strength Index is bullish on the daily time and is steadily rising alongside price.


Conclusion

 

Despite the cryptocurrency already making significant gains this week, the ONT / USD pair still shows scope for further bullish advancement over the medium-term. Traders should watch for technical break above the January 10th trading high and also a breakout from the price channel on the daily time frame.

 

Ontology Chart

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DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

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