Zooming out we can see ONT has been in a major downtrend since our all time high (close) around $9.25. Price is now sitting at $0.77, with our ATL (close) around $0.45. If we are simply looking at it from a risk to reward perspective, I think it’s a no brainer. Stochastic RSI showing momentum is favor of the bulls with no signs of slowing down.
When we take a closer look at our weekly we see price has broke out of a minor downtrend, however lets us not forget we are still in a major downtrend. With that being said, this is still the weekly timeframe which means this is still a big move coming whether its the end of the bear market or not. Last time we were at this price we saw ONT make a radical move from $0.60 all they way up to $1.50. Before we get a push to $1.50, price has to break through it psychological resistance of $1.00. A weekly close above $1.00 indicates we are looking to set a higher high which is a sign we are in an uptrend.
Looking at our trigger timeframe we see price has slowed down and found resistance at $0.7850, stochastic RSI showing momentum slowing down as well and we could be seeing a possible retracement. The bullish engulfing left on Feb 2nd is a good sign we could just consolidate at this before making a radical move towards the upside, otherwise expecting a sell off towards $0.70
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