Ontology Price Forecast: ONT breaks out, projecting a 55% upswing
|- Ontology price has defined a two-year base.
- Impressive recovery from the December 2020 low driven by heavy buying.
- Handle development is removing the extreme overbought condition.
Ontology price, over the last two years, has carved out a cup-with-handle base with significant upside potential in the short and long-term. Strong volume and an extreme overbought condition demonstrate the upward momentum off the December lows.
Ontology price nearing a Golden Cross
From the December 2020 low to the February high at $1.66, Ontology climbed almost 700% and formed the right side of the cup-with-handle base. The handle may take some time to complete in order for the symmetry of the base to be aligned.
A daily close above the handle high at $1.66 will alert traders to the new opportunity. The immediate upside potential is the 0.618 Fibonacci retracement level at $2.57, representing a 55% gain. A Golden Cross of the 40-week simple moving average (SMA) above the 100-week SMA would further confirm the breakout.
From a longer-term perspective, the outlook is equally bullish with a measured move target of $13.23 exceeding the all-time high of $12.21 and representing a 700% gain from the handle high.
ONT/USD weekly chart
A decline from here will not discover meaningful support until the intersection of the moving averages around $0.74. Slightly below is the downtrend line from June 2020 and then the December low at $0.34.
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