ONT (Ontology) : RSI Shows Bullish Divergence
ONT plummeted under the uptrend line on Aug.15, it acted as strong support before, so it may behave as resistance now. The pair tried unsuccessfully to scale above the uptrend line in the last three days. Additionally, ONT/USD is trading under the moving averages.
However, the only positive thing now is that the bullish divergence on RSI which indicates a potential reversal in price soon. It must be noted that RSI divergence is misleading in some cases. Therefore, we need other bullish confirmation signals before we go long on ONT. The price must break up the trend line then scale above the 20-day EMA.
If the trend line shows strong resistance, we may see another dip to $0.69 then to $0.50.
However, the only positive thing now is that the bullish divergence on RSI which indicates a potential reversal in price soon. It must be noted that RSI divergence is misleading in some cases. Therefore, we need other bullish confirmation signals before we go long on ONT. The price must break up the trend line then scale above the 20-day EMA.
If the trend line shows strong resistance, we may see another dip to $0.69 then to $0.50.
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