• The technical picture of ONT/USD implies that the coin is ready for a downside correction.
  • The launch of "Stake ONT to Mine WING" may slow down the bears.

Ontology (ONT) takes the 34th place in the global cryptocurrency market rating by total market value. At the time of writing, ONT/USD is changing hands at $0.842, gaining over 7% in the last 24 hours. ONT has a market capitalization of $589 million and an average daily trading volume of $611 million, twice as much as during the previous week. The coin is most actively traded on Binance and OKEx against USDT.

This technical indicator means trouble for ONT

This indicator developed by Tomas DeMark is an efficient tool of technical analysis that can be used to identify the potential reversals of the local trends on candlestick and bar charts. It works well on the cryptocurrency markets, allowing to predict when the trends start weakening. TD Sequential on the daily ONT chart implies that the current bullish trend has reached a turning point. It appears to be a precise technical indicator for ONT as each time it presented a sell signal, prices dropped 17% on average.

ONT/USD daily chart, TD Sequential

Source: TradingView

Also, the price has returned to the lower line of the upside-looking channel ($0.76). A sustainable move below this barrier will confirm the bearish signal of TD Sequential and allow for a downside move with the initial target at $0.715. It is reinforced by the daily SMA50 at $0.71 and followed by a psychological $0.70. 

Meanwhile, a bear flag pattern on the 4-hour chart confirms the coin's gloomy outlook, while its lower border at $0.77 serves as short-term support for the price before it extends the decline towards the above-mentioned targets. We will need to see a recovery above $0.90 to mitigate the initial pressure ad allow the price to retest the upper line of the flag formation, which coincides with a critical barrier of $1.00.

ONT/USD 4-hour chart, Flag formation

Source: TradingView

Fundamentals may soften the blow

There has been a lot of things happening with Ontology recently. First of all, the team announced that the credit-based DeFi project Wing launched on ONT blockchain deposited $8 million in ONT. Wing is the recent darling of the DeFi space

The Genesis Mine Pool came to existence on September 8; however, the Huobi and Binance announced the token's listing as of September 16. The two big cryptocurrency exchanges announced that they would support the staking campaign. Users will have to stake at least 100 ONT for 30 days to get rewards in WING tokens. 

Staking implies that users lock their tokens for a specific time, reducing the circulating supply, and pushing the price higher. However, the effect is usually short-lived as the market tends to buy the rumors and sell the fact. Also, after a while, traders start taking their coins away. That's what happened with TRX after Justin Sun announced his latest SUN project. The coin jumped to $0.053 only to retreat to $0.029 in a matter of days.

To conclude: the technical indicators imply that ONT/USD may be vulnerable to the downside correction with the ultimate target at $0.70. The setups on the daily and 4-hour charts confirm the bearish scenario. However, a positive fundamental background may mitigate the pressure and push the price back towards $1.00. A sustainable move above this psychological barrier will negate the pessimistic forecast.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Coins Price Prediction: BTC upside capped at $11,600

Twitter and Square CEO Jack Dorsey has yet again reinstated his support for Bitcoin. Bitcoin options open interest is hovering at around 134,000 contracts. Crypto Bitlord accused Ripple of not doing anything to improve ...

More Bitcoin News

Neo Market Update: NEO charts yearly highs, as it readies for DeFi

The new Neo update increases the overall block size limit and improves overall network health. The 4-hour NEO chart has formed the head and shoulders pattern. The Neo Global Development (NGD) has ...

More NEO News

VeChain Price Analysis: VET looking to re-test $0.017 in the short-term

VET is currently trading at $0.0147 after a notable bounce from its low in September at $0.01. VET price is facing some resistance in the form of the 12-EMA at $0.0148. VeChain had a steep correction after its peak on August 7, and it’s ...

More VeChain news

Palm Beach Confidential releases new report highlighting Maker, Enjin Coin, and Numeraire

The newest confidential release from Palm Beach includes several coins like Maker, Enjin, and Numeraire. The company has been giving picks to investors for years now.

More Cryptocurrencies News


Bitcoin Weekly Forecast: BTC crystal ball gives bulls a faint flicker of hope

Bitcoin staged a healthy recovery this week. The pioneer digital currency price took off from the support area of $10,000 and touched the next psychological line of $11,000.

Read the weekly forecast