OCEAN Price Prediction: Steeper decline imminent as bears take control
|- OCEAN price is down 15% in the last two days.
- OCEAN could move decline towards $0.35 in the short term but the uptrend would remain intact.
- Invalidation of the bearish thesis could occur with a breach above $0.52
OCEAN price is going through what many would consider a reasonable decline after an impressive $265% rally since New Year's day. The dip could still be viewed as a buying opportunity, but investors should be aware of the inherent risk to the downside.
OCEAN price subject to more decline
OCEAN price has witnessed a 15% deckube in the last two days, marking the largest two-day decline this year. After an impressive 265% rise since January 1, the 15% decline is not enough to alter the uptrend's market structure. Still, A =adeeper decline is still possible in the short term and would be reasonable considering the incredible profit made in such a short period of time.
OCEAN price currently trades at $0.43. The Bears are testing support from the 8-day exponential moving average, and the Relative Strength Index (RSI) is hovering over support after breaching overbought territory during the recent rally. The RSI's parameters suggest OCEAN could fall an additional 20 points towards the 40 levels and still be considered in a bullish state.
A Fibonacci retracement tool surrounding OCEAN's largest upswing this winter shows a golden pocket 61.8% level at $0.26. A decline into this level would result in a 40% decrease in market value.
It is worth noting that 157 million transactions were recorded during the last two trading days, noted as the most volume traded this year. The fact that most transactions occurred on a red day could be a subtle indication that the uptrend is subject to a reversal.
OCEAN/USDT 2-Day Chart
Invalidation of the bearish thesis could occur with a breach above the 2-day candlesticks' opening price at $0.52. The bulls will need to reach this level to drive the price higher. If the $0.52 level is tagged, the bulls could continue the uptrend and likely challenge the mid-$0.50 zone, resulting in a 40% increase from today's OCEAN price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.