Like the majoirty of altcoins, Ontology has seen a whirlwind of trading in 2019. The cryptocurrency had entered the first half of the year on a strong bullish footing as it surged by a total of 260% from the February low to reach the 2019 high of $2.25 toward the end of June 2019. However, after reaching the 2019 highs, the cryptocurrency rolled over and fell by a significant 66% to reach the current trading price of around $0.62.
Nevertheless, Ontology is still in a slightly better position relative to other altcoins as the cryptocurrency is still up by a total of around 7% from the 2019 opening price. This is quite an achievement when the majority of the altcoin industry has created fresh lows toward the latter half of 2019.
Looking further ahead toward 2020, Ontology still has a promising future ahead of itself. The development team is constantly improving their suite of working products that they have already released - making them more secure, efficient, and accessible! Furthermore, with a company such as OnChain as your parent and a top-blockchain project like NEO as your cousin, Ontology has a strong support system around itself to help it survive through the altcoin depression.
For these reasons mentioned above, and more discussed below, I strongly believe that Ontology has the potential to surge by a total of 260% at some point during 2020 to reach my target price of $2.25.
In this article, I’ll firstly cover a range of topics that I believe will influence ONT in reaching my $2.25 target during 2020 and then analyze ONT on the long term daily charts to highlight some areas of resistance on the way toward the target.
Ontology - Making It Easier For Enterprise To Create Their Own Blockchains
Ontology is commonly described as a Blockchain-as-a-service (BaaS) platform. The entire project was designed with the aim to speed up the adoption of blockchain amongst the world of enterprise.
The cryptocurrency was made by OnChain in 2017 and founded by Jun Li and Andy Ji. It is a high-performance project and distributed trust collaboration platform that also allows for the deployment of decentralized applications (dApps) and smart contracts.
Ontology is structured to bring the blockchain to the enterprise world in an easy-to-use fashion. With complicated coding languages and parameters, it is very costly for enterprise corporations to create their own secure blockchains. Ontology is designed to allow enterprises to join the blockchain world without any prior knowledge! It helps to remove the barriers between blockchain and the business world.
To find out more about Ontology, check out this in-depth piece!
So, Why Use Ontology?
Ontology is not just one single blockchain. Instead, it is a network of blockchains (client chains) that are all interoperable with each one another. This is very similar to how traditional enterprise software currently works as the interoperability allows for various permissions for cross-chain communication across different enterprises.
The Ontology software suite allows businesses to create their own blockchain, granting them the right to pick and choose what to share with the main chain and what data can remain private on their proprietary blockchain created with Ontology. This gives businesses control of what gets out to the public whilst having the advantage and security of blockchain technology.
The technology can easily integrate into existing infrastructure through specifically made modules by Ontology. It achieves this with Cross-platform technology for blockchain and IT systems, that are written in different languages, through modules designed for data exchange.
Ontology Working Products
Unlike a lot of cryptocurrency projects out there, Ontology actually has a host of working products at this moment in time.
ONT ID is a verification and identity proof module. It allows users to control their data and identity and they can remain confident that everything is secure as it is all based on blockchain technology and cryptographic algorithms.
It is an identity framework that is based on decentralized identification protocols that utilize blockchain technology to enables businesses and users to instantly identify and verify people to transfer assets or data.
ONTO is the Ontology wallet that allows users to manage digital assets and take control over their digital identity. Launched in 2018, The wallet can be downloaded on both iOS and Android devices and it will allow access to everything from portfolio management, dApp store access, and digital identity management. Furthermore, the team has recently updated ONTO to allow users to “node stake” in which they can stake their Ontology and earn from the process. To find out how to stake your Ontology, check out this guide!
Ontology v1.8.0 Brings Wasm!
Toward late-October, the Ontology team announced the release of Ontology v1.8.0 which brings the Wasm function to the Ontology MainNet. This was an exciting development that led to a surge in social interest in Ontology (see next section).
Ontology Wasm is a pretty interesting module as it includes a hybrid virtual machine architecture that supports contracts in the native Ontology language, NeoVM, and Wasm. This means that contracts that run on these standards are all interoperable with each other.
Furthermore, the introduction of Wasm bytecode means that developers can now choose their own developmental language to code their smart contracts whether it be C++, Rust or Go.
Social Dominance Picking Up
Data from Santiment shows that after the release of the Ontology Wasm, the social dominance metric and social volume metric skyrocketed! The Social Dominance metric shows the share of the coin’s mentions on crypto-related social media, compared to a pool of the 50+ most talked about projects!
We can see that upon the announcement, the Social Dominance surged to over a 6-month high! Furthermore, the social volume had also spiked at the same time, showing that the interest in Ontology is still alive and kicking - so long as the team continues to release new features!
Ontology (ONT) Price Analysis
LONG TERM - DAILY CHART
What Has Been Going On?
Analyzing the daily chart above, we can instantly get a glimpse of the up and down action that Ontology has seen this year in trading. This type of market movement is pretty much apparent on every single altcoin chart. However, the difference here is that Ontology has not created a fresh new low during the November 2019 price collapse.
Ontology found support in February at the $0.51 level which acted as a launchpad for the 260% price increase that was witnessed over the following months. We can see that Ontology continued to rise through the first half of the year until reaching the resistance at $1.82 toward the end of June 2019. This area of resistance is provided by a long term bearish Fibonacci Retracement level that is measured from the July 18th, 2018, high to the December 2018 low.
After reaching this level of resistance, Ontology reversed its previous bullish trend and started to breakdown at an alarming rate. The cryptocurrency immediately fell beneath both the 100-days and 200-days EMAs during July and continued to drop through the summer months until finding support at around $0.54 level in October 2019.
Toward the tail end of October, we can see that the launch of WASM into Ontology had caused a surge higher for the cryptocurrency, however, Ontology was still unable to pass above resistance at the 200-days EMA at around $1.00.
Ontology has since dropped during the November capitulation as it now trades at around $0.63.
Are We Bullish Or Bearish (as of November 2019)?
As of November 2019, I would be lying if I was to say we are anything other than bearish. A weak neutral case can be made as we are still yet to break beneath the October low to create a fresh lower low. For this bearish market to continue, we would need to see Ontology breaking down beneath the $0.54 level and heading toward $0.50.
For this market to be considered as bullish in the short term, we would need to see Ontology make a break and close above the $1.00 level.
Toward the downside, we can expect initial support at $0.60 which is followed up with some strong support at $0.54. Beneath this, further support is found at $0.51 (February 2019 low), $0.50 and $0.4524 (December 2018 low).
Where Is The Resistance On The Way Up TO $2.25?
On the way up toward my 2020 target of $2.25, the bulls will firstly need to overcome strong resistance at $0.80, where lies the 100-days EMA. This is immediately followed with higher resistance at around $0.92 which is provided by the 200-days EMA.
Higher resistance can then be found at $1.01 (short term .382 Fib Retracement), $1.15 (short term .5 Fib Retracement), and $1.30 (short term .618 Fib Retracement).
If the buyers can continue to pish above $1.50, and break the resistance at $1.65, further significant resistance is then to be expected at the $1.82 level which is provided by the long term bearish Fibonacci Retracement level. Following this, resistance lies at $1.99 which is provided by the 1.272 Fibonacci Extension level.
If the bullish pressure continues to cause Ontology to drive above the $2.00 level, the bulls will need to overcome resistance at $2.15 (1.414 Fibonacci Extension level) before being able to make an attempt at my 2020 target of $2.25. The resistance here is provided by a long term bearish .5 Fibonacci Retracement level.
In conclusion, Ontology most certainly does have the potential to turn things around during 2020 and increase by around 260% to reach my 2020 target of $2.25. The project has a great support system that extends from OnChain and the NEO blockchain that should help the project survive during any turbulent times that might arise over the next few months. Furthermore, the development of the project continues which is proven by their late-October release that had even caused Ontology to surge by 100% alone.
Before being able to make an attempt at my 2020 target, Ontology will need to overcome resistance at $0.80 and $1.00. Above this, resistance is at $1.30, $1.50, $1.82, and $2.00. If the bulls continue to drive higher above $2.15, the market will be free to make an attempt at my 2020 target of $2.25.