Ocean Protocol (OCEAN) is an ecosystem that has set up a platform to sell data while retaining ownership. Interesting, right? This opens many doors in the creation of services that require the consultation of specific data. Although the development of the ecosystem continues, the OCEAN is not in its best shape. Since April 2021, it has experienced a decline in the markets. In this Monday AT news, let’s take a look around our charts to study the asset.
This analysis of the OCEAN is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.
The OCEAN in freefall on a weekly scale
After a all time high at $1.94coupled with the failure to break through a resistance zone at $1.60, the OCEAN experienced a powerful drop which led him to bounce on the $0.32 during the summer of 2021. Returning to the pivot zone at 0.60 dollar, the asset was confronted, from August 2021 to January 2022, with a new resistance zone at the symbolic price of 1 dollar. The buyers weren’t strong enough and ended up in a downward spiral that is still happening. Losing the pivot zone and, a few months later, its support at $0.32, the OCEAN continues to sink like most cryptocurrencies.
Currently at $0.16, OCEAN is back to levels it has not seen since July 2020. In a weekly downtrend with descending lows and highs, the asset recently pulled back off its former support at 0.32 dollar. This confirms the bearish breakout. If the OCEAN wishes to make a trend reversal, it will have to register a top above $0.34, then an ascending bottom. This is the prerequisite for hoping for a lasting recovery in support. However, for now, signs of a trend reversal are nil. So, let’s now move on to the daily chart to get a more detailed view of recent fluctuations.
A bearish breakout of the range to watch?
What we can see is that after the loss of support at $0.32, OCEAN consolidated for the first time between $0.19 and $0.23. Breaking up from above, it was only temporary, as eventually the downside breakout materialized. Subsequently, OCEAN entered a new range which is still valid. Oscillating between 0.20 and 0.16 dollars, a bearish gap is in progress with a bearish breakout of the range. This is a seller sign that demonstrates the loss of buyer interest for this pair.
The observation is clear: the trend is downward on a weekly and daily scale. This allows us to have in mind 2 bearish targets quite important:
- $0.08 : a resistance that the OCEAN faced from April 2019 to July 2020. As the price never returned to it, it is very likely to consider a return to this level in view of the downtrend;
- $0.04 : a technical level on which the price reacted on many occasions as resistance and support. A loss of $0.08 will allow us to consider this level.
Finally, to complete this analysis of the OCEAN, we can use the Fibonacci tool by looking for the optimal retracement in the short term. For this, we take the last bullish move having taken place. Here it is from $0.161 to $0.215. Once done, I only leave the 1,618 of Fibonacci. Thus, we can consider a retracement of the price to 0.11 dollar from the moment when the price will have broken its low point at 0.161 dollar. It is an interesting tool to have technical zones when you are in a price zone where there has been no volume for several months.
Here we are at the end of this analysis of the OCEAN on the weekly and daily scale. You can see it. The trend is down. The asset is back to levels it has not seen for over 2 years. Moving from consolidation to consolidation on a daily scale, we need to watch the bearish breakout which is in progress. Confirmation of the range loss with a close below $0.16 could propel OCEAN to the lower price levels that have been hinted at in the analysis.
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