Technical Pick: Ontology (ONT)

Bitcoin continues to ebb and flow since the near-term lows of $7000, albeit to the upside. The pattern is forming a rising wedge on the 4-hour time frame and will soon reach its apex, resolving itself either way. These patterns tend to favour the downside, although they can go either way and as a move to the downside could form a higher low on the daily, further downwards pressure could be what the market needs for long-term growth. During this period certain alts have seen some reasonable gains, impatiently waiting for Bitcoin to confirm the low. Ontology (ONT) has been one of these key winners, with excellent potential for further growth. Since the highs of early May, ONT has been consolidating in a tight range between 0.0008 Satoshis and 0.001 Satoshis, whilst many other alts have seen considerable loses. This stability has formed significant support and indicates the coin is ready to run as soon as market conditions are favourable. Yesterday, on the daily chart, ONT broke out of the bull flag formed since the all-time highs, a 10% move with strong volume. Breaks of these patterns on the longer-term time frames are often extremely bullish signals. Today, on the 1-hour chart, ONT has been consolidating yesterday's move, in a tight bull flag pattern, with indications of a break to the upside imminent. Ultimately, as always, the market remains tentative until Bitcoin confirms its long-term position. For now, an early position in ONT at current price levels with a tight stop-loss on the 0.0008 Satoshi support level, could lead to excellent gains if market conditions permit. For the more conservative investor, a break of the 0.001 Satoshi level with strong volume would be significant and confirm the long-term uptrend, as this level is both long-term resistance and a significant psychological barrier. From 0.001 Satoshis, there is little resistance to all-time high territory and how high ONT goes from there is anyone's guess. With strong support from the Neo network and its surrounding community, Ontology appears to be the first rising star on the Neo blockchain. Be sure not to miss out on this opportunity.

Source: Trading View

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