Possible Cup & Handle formation in Ontology (ONT-BTC)
Recently Ontology (ONT) announced their MainNet launch, which will go live on 30th June 2018. In the past week, Ontology trading pairs were listed on Binance, not just that, Binance also tweeted their support for Ontology’s token swap.
At the time of writing, ONT is trading at the price of 9140 satoshis, with a market cap of 973 millions. The coin has seen a fall of 12.74% in the past day, but mainly because of Bitcoin sell off.
In the daily chart, we see a formation of a Cup and Handle pattern. It occurs when there is a price wave down, followed by a stabilizing period, followed by a rally of approximately equal size to the prior decline. This creates a U-shape, or cup. The price then moves sideways or drifts downward within a channel. This forms the handle.
Now ONT is founding support in the red line, together woth the 61.8 retracement level.
A conservative buy would be at the 9000 - 9100 range, in the 61% Fib level zone.
If Bitcoin fails to hold the current price levels at $6400-$6600, we can expect ONT to lose this Fib level as well and a dip to the red line and the 78% Fib level is likely. Just below the 78% level, ONT has 7233 sat as the previous low, together with the blue line.
This idea can be invalidated, however, if Bitcoin loses the $6400 support and dips below that price.
At the time of writing, ONT is trading at the price of 9140 satoshis, with a market cap of 973 millions. The coin has seen a fall of 12.74% in the past day, but mainly because of Bitcoin sell off.
In the daily chart, we see a formation of a Cup and Handle pattern. It occurs when there is a price wave down, followed by a stabilizing period, followed by a rally of approximately equal size to the prior decline. This creates a U-shape, or cup. The price then moves sideways or drifts downward within a channel. This forms the handle.
Now ONT is founding support in the red line, together woth the 61.8 retracement level.
A conservative buy would be at the 9000 - 9100 range, in the 61% Fib level zone.
If Bitcoin fails to hold the current price levels at $6400-$6600, we can expect ONT to lose this Fib level as well and a dip to the red line and the 78% Fib level is likely. Just below the 78% level, ONT has 7233 sat as the previous low, together with the blue line.
This idea can be invalidated, however, if Bitcoin loses the $6400 support and dips below that price.