Ontology Gas (ONG) Token Has Surged More Than 690% | Now Breaking Down The Channels Clockwise

Ontology Gas (ONG) Token Has Surged More Than 690% | Now Breaking Down The Channels Clockwise

By moon333 | moon333 | 27 Jun 2020


Hi folks hope you are good and welcome to the new update on Ontology Gas Token. This token has surged more than 430%. We will try to understand how this token completed the bullish set up before making this powerful bullish move and how the price can behave next.

 

A big bullish Butterfly setup:

On 7th January 2020 I posted an article on tradingview and you can see that I predicted that the price action of Ontology Gas token has completed a bullish Butterfly and entered in the potential reversal zone. When I published my post the price action already had hit just a spike in the PRZ level and it was moving above the potential reversal zone area. In the first week of Jan 2020 the price action started moving up and produced more than 215% gains and again dropped in the potential reversal zone. Then again in the first week of April the price action started the next bullish rally and produced more than 430% bullish rally.

Bullish butterfly idea before execution:

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Bullish butterfly idea after execution:

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Click here to visit this old article on tradingview

 

Movement in up channel and obvious signals for breakout:

Before this powerful bullish rally the price action gave two other obvious signals for the breakout. On the daily chart the priceline was moving in an up channel since after the mid of March 2020. If we watch the directional movement indicator then the +DI crossed up the -DI on 19th March 2020 and since then the positive direction indicated did not cross down the negative direction indicator. And ADX was also continually moving up that was a very strong signal for the break out. And if he watch the moon phases indicate then after continuously strong spikes by the price action. Finally the new full moon was appeared at a long altitude that was another very clear signal that the price action can easily reach up to this level.

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All SMAs are broken out:

Now if we watch on the daily chart the price action has broken out the simple moving averages with the time period of 25, 50, 100 and 200. At this time the distance between the moving averages and the price action is very big. Therefore if the price action will start correction rally up to the nearest available simple moving average to have some support then it can be a really big drastic drop. However, if simple moving averages will be moved up to provide the support to price action then this drop can be avoided.

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The EMAs are broken out:

If we watch the exponential moving average with the time period of 10 and 21. Then the price action has also crossed up these moving averages as well.  These moving averages are faster than the simple moving averages. Therefore these EMAs can provide the support very soon before the simple moving averages. And unless these EMAs will be not broken down we can expect that the bullish rally will be continued.

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Up channel on hourly chart:

Now if we switch to the small-time period then after the breakout the price action formed an up channel on the hourly chart and recently the price action has broken down the support of this channel.

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Expected parallel channel formation:

After breaking down the up channel on the hourly chart the price action is likely to form a new parallel channel. We can see 100 and 200 simple moving averages supports below this expected channel. AndM and both moving averages are moving up. Once they will be reached close to the price action then the priceline of Ontology Gas will have more strong support. Here we can make the 200 simple moving average on hourly chart as stop loss. Because if this support will be broken down then price action can move more down up to at least 25 simple moving average on the daily chart. And that is almost 36% down from the current level.

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 Click here to create free account on tradingview to watch and play the chart on realtime

 

Conclusion:

Even though the price action has surged more than 690%. But the price action is breaking down the different channels clockwise. Therefore taking care of stop loss is very important. However, if the price action will not break down the current channel then we can witness a further upward move after breakout.

 

Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.


moon333
moon333

Hi, My name is Atif Akbar and I am trading charts author of all kind of assets


moon333
moon333

Hi my name is Atif Akbar and I am one of the top 3 authors of cryptocurrency trading charts as per tradingveiw I publish there with my username moon333 to verify you can visit: https://www.tradingview.com/markets/cryptocurrencies/ideas/ I also publish the charts of different other assets like forex, commodities, CFDs Stocks e.t.c. Here you will find perfect predictions on different trading assets.

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