Ontology (ONT) defies gravity with 45% gains in recent 24 hours

Ontology (ONT) is one of the China-based cryptocurrency projects that benefitted from President Xi Jinping’s recent endorsement of blockchain technology. Now the 23d largest digital asset with the current market value of $549 million, ONT has nearly doubled its value in recent days. At the time of writing, ONT/USD is changing hands at $1.0047, off the intraday high of $1.1830. On October 25 the coin was hovering at $0.6500. 

Fundamentally, Ontology's head-spinning growth aligns with the general bullish trend among Chinese-based coins caused by President Xi’s speech to the Politburo three days ago where he said that China should lead the global blockchain revolution.

The market interpreted his words as a green light for the Chinese blockchains and caused a double-digit growth of the respective coins, even though Xi never mentioned cryptocurrencies, and referred only to blockchain.

ONT/USD, the technical picture

Looking technically, ONT/USD is trying to make its way above SMA200 (Simple Moving Average) on a daily chart (currently at $1.0310) If it succeeds, the upside may gain traction with the next focus on the recent high of $1.1830. This barrier is followed by a psychological $1.20.

On the downside, strong support is created by SMA50 weekly at $0.9450. A sustainable move below this handle will increase the downside pressure and take the price towards the next critical support created by SMA100 daily at $0.7646.

ONT/USD, the daily chart