Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Like many altcoins in latest months, the token of Ocean Protocol [OCEAN] additionally fashioned a variety and has traded inside it since June. Bitcoin [BTC] doesn’t have a bullish narrative over the following few weeks, though it may nonetheless make a transfer towards the $24k area.
Such a transfer upward would favor the altcoin market as properly, together with OCEAN. The worth approached the vary lows at press time and will quickly provide a shopping for alternative.
OCEAN- 12-Hour Chart
Supply: OCEAN/USDT on TradingView
The development is a dealer’s buddy, and ranges might be as properly. OCEAN fashioned a variety (yellow) from $0.2375 to $0.1536 with the mid-range at $0.195. Since June, the value has traded inside this vary, and the mid-point has been revered as important help and resistance.
On the 12-hour chart it may be seen {that a} bearish order block (crimson field) fashioned in Might. This candle noticed bearish subsequent buying and selling periods that broke the market construction and flipped it to bearish. In June, after breaking above this zone, OCEAN was capable of shut a session as excessive as $0.3. Nevertheless, it shortly retraced all these beneficial properties to fall to the vary lows.
Going ahead, shopping for on the vary lows may very well be the play. Invalidation can be simply outlined, particularly on decrease timeframes.
OCEAN- 2-Hour Chart
Supply: OCEAN/USDT on TradingView
Just like the earlier bearish order block, one other zone of provide was seen at $0.19-$0.195. Marked by the crimson field, it confirmed a former help zone from August that has since been flipped to resistance. Furthermore, this space has confluence with the mid-range level, making it a stronger resistance zone.
On the opposite facet, a requirement zone was recognized close to $0.15 and highlighted by the cyan field. This demand zone additionally has confluence with the vary low at $0.153. The Relative Power Index (RSI) slipped under impartial 50 to focus on bearish dominance prior to now couple of days.
But, though the RSI was in decline, the On-Steadiness Quantity (OBV) witnessed a major uptick in September. Over the previous week, the OBV too declined marginally. Regardless of this dip, it nonetheless confirmed wholesome shopping for strain prior to now ten days.
The Chaikin Cash Circulation (CMF), alternatively, stayed under or at impartial territory in the identical time interval to point out important capital outflow from the market.
Conclusion
The every day in addition to the two-hour chart confirmed bearish momentum, though the underside of the vary was imminent. A dip towards $0.15 would provide a shopping for alternative with a stop-loss at or under $0.147.
Close to-term resistance at $0.175, in addition to the $0.195 mid-range can be utilized to take-profit. A every day session shut under $0.149 may invalidate the thought of a bounce.
