OCEAN Technical Analysis: A Rising Parallel Channel Drives Uptrend
Table of contents
Ocean Protocol is a Blockchain-based ecosystem that allows individuals to unlock the value and monetize their data through the use of ERC-20 data tokens.
The Protocol allows publishers to monetize data while maintaining privacy and control. Consumers can also access datasets that were previously difficult to spot or unavailable. These datasets are available on the market, where they can later be consumed or sold.
Let us now move ahead to the technical analysis of the OCEAN.
Past Performance of OCEAN
The OCEAN token price has been steadily moving in an uptrend making new higher highs and lower highs. The crypto trader can notice the technical chart reveals a rising parallel channel in the daily time frame chart.
Hence, the token provides a great entry opportunity when the price obtains sufficient support from the ascending support trendline.
OCEAN Technical Analysis
Respecting the parallel channel, the price is back to the overhead resistance trendline after its recent bullish reversal on November 18th. The token price is currently experiencing intense selling pressure from this level, indicating that it may undergo another retracement.
The RSI indicator maintains a bullish sentiment for the token by sustaining above the neutral line (50). However, the chart also projects bearish divergence in this rally, indicating weakness among the market buyers.
The MACD and signal lines are still hovering above the neutral zone of the MACD indicators in the 4-hour time frame chart. Moreover, if price active presents a bearish reversal from the resistance, the indicator's lines would drop below the middle line providing more confirmation for the selling momentum.
Upcoming Trend
The OCEAN price action maintains an overall uptrend, which will remain intact inside this bullish pattern. However, rising parallel channels are known for a strong bearish move when the price gives a breakdown from the support trendline.