The Ocean Protocol Attempts to Breakout from Long-Term Resistance
The Ocean Protocol (OCEAN) price has been trading under a descending resistance line for 896 days. However, the price action and RSI readings suggest that a breakout from this line is likely to happen, leading to a significant increase in price.
OCEAN Protocol Price Movement
Since reaching an all-time high of $1.94 in April 2021, the OCEAN protocol price has been falling under a long-term descending resistance line. This line has been validated six times so far, with the most recent validation on July 17. The line has been in place for 896 days.
After being rejected by the resistance line, OCEAN fell to the $0.25 horizontal support area, where it initiated a bounce. The presence of a long lower wick indicates buying pressure.
The $0.25 area is crucial as it has acted as both resistance and support since April 2022. Whether the price breaks down from this area or breaks out from the descending resistance line will determine the future trend for the DeFi coin.
OCEAN Price Prediction: Bullish Trend
While the weekly chart provides an unclear trend, the daily timeframe readings are decisively bullish. The price movement shows that the decrease since the yearly high has been contained inside a descending parallel channel, suggesting an eventual breakout is expected.
The wave count also supports a bullish trend. There have been two distinct corrective patterns moving downwards and two five-wave increases since the beginning of the year.
Additionally, the daily RSI is increasing and above 50, indicating a bullish trend for OCEAN.
OCEAN Price Prediction: Breakout Expected
Based on the analysis, the most likely OCEAN price prediction is a breakout from the channel and a 75% increase to $0.55. However, a rejection from the resistance line could cause a 37% drop to the support line at $0.21.
Hot Take: OCEAN Protocol Poised for a Bullish Breakout
The Ocean Protocol (OCEAN) price has been trading under a long-term descending resistance line for over 896 days. However, recent price action and technical indicators suggest that a breakout from this line is imminent. The daily timeframe readings show decisively bullish trends, with the price movement contained within a descending parallel channel and a wave count indicating a bullish trend. Furthermore, the daily RSI is increasing and above 50, further supporting the bullish outlook. Therefore, it is likely that OCEAN will experience a breakout from the channel and see a significant increase in price. However, traders should be cautious of a potential rejection from the resistance line, which could lead to a significant drop in price.
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