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Is Ontology Coin a Good Investment? Fundamental Analysis
Ontology offers a range of decentralized solutions and applications designed to bring trust, privacy, and security to identity and data issues, making Ontology Coin a good investment. These issues are key to building the future of Web3 and giving users back sovereignty over their data and the data they produce.
The company defines Ethereum’s Ontology Layer 2 public blockchain as very fast, inexpensive, accessible, and secure. This blockchain can also operate between different networks such as the BNB Chain, and the Near and Polkadot ecosystems.
This Blockchain uses the Proof of Stake (PoS) mechanism and allows users to place their $ONT tokens in staking to secure the network and earn $ONG tokens as rewards. The ONT token serves as the primary means of both storage and transfer of value on the Ontology network.
Their main solutions are ONT ID and ONTO Wallet, which lets you manage your assets, online identity, and data from a cross-chain wallet.
The project partners with big names in the ecosystem such as AAVE, Chainlink, and Google Cloud. The roadmap for 2024 is busy, and the team continues to build intently to develop and improve their solutions.
The project has been audited by Certik and has a confidence score of over 85%. The Total Value Locked (TVL) on Ontology represents $32M to date.
The quantity of tokens in circulation is stable, and growth is slow, so tokens are not subject to high inflation, which is good news for investors. Thinking of investing in Ontology?
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Assessing Ontology Coin’s Investment Potential: Technical Analysis
Today, the $ONT token is capitalized at $282M and represents a Fully Diluted Valuation of $315M, placing it at the 266 th most capitalized crypto.
The current price of the $ONT cryptocurrency is $0.31, with an All-Time-High (ATH) of $10.92, a price that was reached in May 2018.
Let’s now analyze its chart:
Looking at the chart in weekly time units, we see that this crypto has suffered a sharp price decline since 2021 but has been sideways in an accumulation range since May 2022, testifying to renewed interest from long-term investors who are supporting the price between $0.15 and $0.37.
So, Is Ontology Coin a Sound Investment for Q2 2024?
It’s still early to say that this crypto will offer good returns over this period, but we need to keep an eye on the $0.38 resistance level, because if we break it and validate it as support by performing a pullback on it, then a strong bullish signal will be given as the price breaks out of the accumulation range that began almost 1 year ago.
Looking at the chart in a smaller time unit, we can see that lately the price has been pushed up by buyers and that an uptrend is attempting to take hold, with a performance of around +100% since the bottom we set.
In the event of a bullish scenario and an acceleration of the crypto market, the main resistance and profit zones will be found at $0.65, $1, and in the short reload zone located between $1.73 and $2.15. Once again, we currently lack confirmation to envisage this scenario over the next 3 months.
In the event of a bearish scenario and market correction, the main support zones and interesting buying points will be at $0.20 and $0.13. If we break these levels on the downside, we’ll no longer have any support and will be looking to record new historic lows.
But if we compare the chart of the $ONT price against the Bitcoin price, we see a strong downtrend and historical lows. This highlights the outperformance of $BTC against $ONT. As long as this chart doesn’t turn around, it means that $BTC is a better investment than $ONT. For the time being, no buy signal is given on this chart.
Conclusion
The Ontology project aims to solve major Web2 problems, enabling Web3 users to regain control over their online identities and data, securely and with confidence. However, the $ONT token has yet to provide any bullish confirmation that it will outperform Bitcoin over the next few months.
On the other hand, its chart and action price have been very interesting over the past year, and if we are patient and rigorous in monitoring this chart, we could find an excellent entry point with limited risk and an upside potential that would yield a very good return on investment.
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