Dacity Coin
Injective
Starknet
NEAR Protocol
Pearl
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Pump.fun
- Ocean coin is forming a flag and pole pattern which could rocket soon.
- The support of 0.24721000, if broken, could mean a bullish trap and bad news for buyers
The Ocean protocol, built on the Ethereum block chain, employs ‘data tokens’ to control access to data sets. Users can redeeem these tokens to gain access to the information. Trent McConaghy, an AI researcher, and Bruce Pon established Ocean Protocol in 2017. The purpose of Ocean’s software is to facilitate this data interchange by connecting users who require data but lack the resources to keep it with those who have the resources. Providers of these resources receive OCEAN, the native crypto currency of Ocean, as payment for their services.
Analyzing price of OCEAN/UST:
Weekly chart
Observing the weekly chart it is evident that the market is currently in a downtrend. The previous support of 0.38279641 was decisively broken as visible on the chart. The interesting point is that after the downfall, the market formed a range and recently on 9 Jan 2023 gave a breakout to the range. Although the breakout breached the previous support, it now acts as resistance due to price action. Despite expectations of a bearish momentum, the market is now forming a bullish flag and pole pattern. In addition to that it retested the breakout of the range. Considering these factors, it is reasonable to expect an upward momentum above the previous low level of 0.38279641 or the trend line break. Furthermore, investors/traders looking to short the coin can look for opportunities below the level of 0.24721000 which is the recent low made by the retest candle marked by a circle.
Daily chart
Further analysis of the daily chart reveals a descending triangle pattern. Though considered a bearish pattern, it is important to consider other technical factors before assuming a breakdown. This is clear from the fake breakdown marked by a circle on the chart. The 50 and 200 exponential moving averages (EMA) are at similar levels as the price, indicating indecision. Moreover, the Average Directional Index (ADX) indicator is below 20, further supporting the coin’s indecisiveness. An individual can expect bullish momentum after the trend line break and expect to see a bearish move after the breakdown of the support . It is crucial to differentiate true breakouts from false ones by considering volume, ADX, and RSI indicators to confirm entry.
Conclusion
The Ocean coin (OCEAN/UST) is at a very crucial level which could decide the direction of the token for the coming months. A strong bullish uptrend is forthcoming in the future. If not, the coin can continue its downfall with the upward rally being a bullish trap. Regardless of the price direction, it is important for individuals to assess their risk profile and conduct thorough research and analysis before making any trade or investment decisions.
Disclaimer
The information on this document is provided for information purpose only. It does not constitute any offer, recommendation or solicitation to any person to enter into any transaction or adopt any hedging, trading or investment strategy, nor does it constitute any prediction of likely future movement in rates or prices.
