ONTOLOGY – Can it be as Magical as it looks?

In this article i will focus on why Ontology can be profitable investment in the near future and why you should keep an eye on it.

P.S: I am not shilling this coin or anything like that and i am not getting paid in any manner to write this article. This is for educational purposes only. I am writing this because i believe in this project.

So, without any further ado, let’s get started.

For all those who don’t know what Ontology is, let me quote the description from their whitepaper:

“Ontology is a blockchain/distributed ledger network which combines a distributed identity system, distributed data exchange, distributed data collaboration, distributed procedure protocols, distributed communities, distributed attestation, and various industry-specific modules. Together this builds the infrastructure for a peer-to-peer trust network which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.”

Too much, right? Chuck it.

We are here for price analysis and not for decoding these xyz terms(maybe we can do that on some another day!).

So, getting back to the important point here. Let us travel back in time!
Let’s travel back to the month of March and when the Bitcoin plummeted so hard but Ontology still managed to sky rocket. You may ask, how? The reason for this upward movement was the listing on Upbit which made ONT gain some good amount of followers and a lot of exposure in the market. Ontology was fortunate enough to revive this listing on the right time and as a result went against the, then market trend which was Bearish.

Let’ fast forward to the present scenario.
At the time of writing this article, the ROI in USD, ETH and BTH were as shown below:

As you can see, Ontology is still in a great position from the ICO stage, that too when it trading at nearly at 40% less from the All time high(ATH).

You may ask, why are you telling us all this? We just want profits.!

Okay i got you. So, let me explain to you a bit more. I went through the historical data of Ontology & Bitcoin and found some interesting correlation between Ontology and Bitcoin.

I used OnchainFX for calculating the Pearson Coefficient over the daily returns of BTC and ONT for the time period 5 May-19 June and the ratio came out to be +0.8484.

For those who don’t know what Pearson coefficient is, try to understand this:
This is a number ranging from -1 to 1, which represents the degree to which movements in the two assets are historically correlated. This is calculated over the time-range the chart is set to, and will be re-calculated if the chart's time-range is changed.

A negative number indicates that if asset A moves in one direction, asset B has historically most likely moved in the opposite direction. Similarly, positive values indicate prevalence of same-direction moves.

So, now coming back to the correlation between price of ONT and BTC. Since the coefficient came out to be positive and that too to a great extent(0.8484), this means that Ontology follows Bitcoin price movements. Now since, Bitcoin has started rising in the last 2 days, the market sentiment is seen to be changing to Bullish.(It may or may not be a bull trap, let’s just forget it at this moment.), but we can expect some good things in the near future for ONT too.

Also, let’s just ignore the Bull trap theory for Bitcoin for a second. Keep in mind that i do not try to catch exact bottoms, nobody is that perfect. But let me show you some more historical data which shows that opening long in Ontology at this price(At the moment $6.4) can be profitable in mid to long term.

So, below is the historical data for ONT-USD like opening price, closing price, high, low, volume and market cap for the last 45 days(5 May-18June).

You may ask how is this data relevent? What can we infer from this?

The answer is too simple. Look at the average high, low, opening and closing price. It is hovering around the range $7-$7.5. Now look at the current price of ONT which is around $6.4.

Rings any bell?

For me it’s a good entry point because Bitcoin fell so much, it almost touched $6k but Ontology did not fall below $5.5. So, $6.4 seems a very good entry point for me.

In addition to above points, Ontology has got some great events lined up towards the event of this month. This includes the Main net launch , the distributed identity framework (ONT ID) release and the Verifiable claim protocol release.

And you know what is the best part? The best part is that they are all about to get released on the same day i.e. on 30th of June. You can check with any website which keeps a calendar of events for cryptos, i used coinmarketcal for this. I am posting the screenshot below.

CONCLUSION:

I’ll leave it for you to decide. For me, i have opened up some long positions already and i feel we may see some good Bullish action soon. I may have opened positions too soon but i really believe in the project and going by the growing support of the community, expecting a strong movement soon. You should too keep an eye out on this project.

Also, i’ll try to post the technical analysis for Ontology in a few days or maybe tomorrow(if time permits).

P.S: This is not an investment advice. Invest your capital at your own risk. Do your own research before making any investment decisions.

“Those who wish to achieve greatness, never seek for permissions.
They follow what their heart says and do what their mind states!”

Good luck trading.!
Peace.

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