Originating from China, the Ontology project is a blockchain project helping business harness the power of the distributed ledger technology. The coin has not been spared during the bearish momentum that has plagued the cryptocurrency market this year with ONT prices dropping to yearly lows.
The past three months have seen ONT lose over 50% of its value. However, recent developments promise to push its price back up. Currently, ONT is trading at a price of $1.79 with a market cap of $370 million.
Below is an analysis of ONT price in terms of Ontology news items and technical analysis on ONT/BTC trading pairs.
In less than a month, Ontology has partnered with two firms specializing with AML and KYC conformity.
One is Shufti Pro with which Ontology signed a Memorandum of Understanding (MoU) that will see the two firms join hands in developing digital identity services.
With Ontology being a public blockchain, digital identity is a cornerstone in the success of the blockchain project which is based on trust.
By partnering with Shufti Pro, a leading firm providing verification solutions on a global scale, more companies are bound to trust Ontology. It’s a move that will lead to increased adoption.
While signing the MoU, Victor Fredung, CEO, Shufti Pro, said:
“We have followed their [Ontology] progress with interest for some time, and now is the right time to move forward. Furthermore, we believe that the combined use of new and innovative blockchain technology with cutting-edge ID and identity verification is a powerful combination for global business operations.”
In addition, Ontology seems to be gaining traction beyond this. MIXMarvel, a gaming platform and content community, has signed an agreement with Ontology to bring its “Hyperdragons” game to the ONT network. This news hit the market 2 days ago. This adds to the partnership signed with the Evernym and the Sovrin Foundation to form an East-West digital identity consortium.
Partnership With 4Stop
Ontology has also entered into a collaboration with 4Stop to provide Know-Your-Customer verification on its platform.
With financial regulators concerned about money laundering and terrorist financing, having high-end solutions guarding against these vices is a significant relief not only for regulators but also for those eyeing the Ontology platform.
Increased trust in the platform will lead to increased adoption. It’s something that will drive the price of ONT even higher.
Commenting on the partnership, Ingo Ernst, the CEO of 4Stop said:
“With the ever-evolving adoption of blockchain technology, we are very excited to be part of Ontology’s innovative blockchain project by providing them with further KYC services to verify and authenticate personal data across the globe. Creating a mainstream, standardized, and easily accessible compliant and trusted infrastructure is something we are both passionate about, and we look forward to future developments.”
Ties with China
Andy Ji, Chief Strategy Officer at Ontology, has previously held top positions in the Chinese government. He was once the General Secretary of the Ministry of Industry and Information technology in China.
Its founder, Jun Li has also worked with Financial Futures Exchange in China and Infosys.
With such connections, it’s only safe to assume that the Ontology platform will be viewed favorably in China.
Although China has clearly stated its stand regarding cryptocurrencies, it has taken the lead when it comes to blockchain adoption.
With the growing use cases for the Ontology blockchain, it’s not hard to see the platform gaining mass adoption in China. Consequently, this is likely to push the price of ONT up.
In conclusion, within a year of existence, Ontology (ONT) has, without doubt, manifested its strength as a platform. Partnerships have also helped pushed its price up. And once the AML and KYC solutions are fully implemented, expect its price to rise even higher as more businesses get on board.
ONT price is nearing the point of convergence of the symmetrical triangle on the long term chart, and may be on the verge of a solid breakout in the next few days. Read the outlook for ONT right here to see the possible price moves for this crypto asset.
ONT is traded on Binance in a pairing with BTC, so this analysis piece will cover the ONT/BTC pair. The chart shown below paints the long-term picture as presented on the weekly chart.
ONT/USD Weekly Chart: October 28, 2018
The support trendline of the triangle connects the lows of price action dating back to April 2018. It is met by the resistance trendline which connects the highs of price action from August till date. These trendlines form a symmetrical triangle, and price action is seen to be close to the point of convergence of the trendlines.
To get a clearer picture of what is seen on the weekly chart, the daily chart has to be reviewed in greater detail. This chart is shown below.
ONT/USD Daily Chart: October 28, 2018
On this chart, we can see the following for ONT price outlook:
- Within the confines of the trendlines that form the symmetrical triangle, we see that the price action is finding it difficult to break below the 0.0002649 price level. This price, therefore, forms the minor support.
- The trading volumes are indeed very thin. This is manifested by the near-absence of volume bars (on both the buy and sell side) as well as the small-bodied candles that have been found in the last two weeks of trading.
So how do these translate into actionable trade scenarios?
Trade Scenario 1
Continued light volume trading will ensure that price action will trade around the minor support area. If this persists, then resolution of the pattern in a breakout will be put off for some time to come. However, if trading volumes increase on the selling side, then the minor support may be violated, which will open the door for price to attain the support trendline, and to continue trading within the range of price action that is defined by the trendlines. If the buyers are able to pick up their trading volume, then price will first head upwards to test the resistance trendline.
Trade Scenario 2
Every triangle will eventually end in a breakout. The only dilemma for the trader is: how long does it take before this will happen? There is really no way to predict beforehand how long a symmetrical triangle will stay in evolution before it ends in a breakout. However, there are clues that provide some insight as to when this is imminent. One of such clues is an increase in trading volume, especially if this is on the buy side. This sometimes follows a very quiet period, similar to what is happening on the daily chart.
So the second trade scenario will be for price to breakout either to the upside or downside, but this must be preceded by a sharp increase in volume which will point to the direction of the breakout. Typically, the triangle breakout occurs when price is three-quarters of the distance between the base of the triangle on the left and the apex of the triangle on the right.
The long-term, mid-term and short-term outlook of ONT price with the ONT/BTC trading pair is:
- Long-Term – bearish
- Mid-term – neutral to bearish
Want to learn about Ontology? You can read more about the project in our full guide here.