Is the Ocean Protocol price setting up for a 25% decline?

Ocean Protocol price (OCEAN) may be in the beginning stages of a significant counter-trend decline. Key levels have been defined to gauge the market's next potential move.

OCEAN price is setting up a downswing

Ocean Protocol price is down 9% on the day as the entire crypto market has witnessed a violent selloff. The move south was catalyzed by a rejection from the 8-day exponential moving average (EMA) during the London session on March 3.

OCEAN price currently auctions at $0.36. Still, the scalable blockchain token remains 129% above the yearly opening price. A Fibonacci retracement tool surrounding the January 1 opening price at $0.16 and the year-to-date high at $0.58 shows the current selloff as just a 38.2% correction of the winter rally. OCEAN's failure to hold support above the barrier now creates potential for a decline as low as the 61.8% FIB level near $0.26. The bearish scenario would result in a 25% decrease from OCEAN's current market value.

OCEAN/USDT 1-Day Chart

While the recent downswing shows promise, there is always potential for a market reversal. Traders should remember that OCEAN breached overbought conditions on the weekly Relative Strength Index (RSI), a display of bullish strength unmatched amongst its cryptocurrency peers. Therefore, the winter rally May solely be taking a cool-down period by retracing towards the 61.8% level near $0.26 before creating the next leg up.

The earliest evidence to suggest the correction is over will be a breach above the previous swing high at $0.43. if the breach occurs, the bulls could re-route toward the year-to-date high near $0.58