The cryptocurrency market has made a significant recovery during the past 24 hours. Bitcoin has reclaimed $41,000, while Ethereum has gone beyond $3000. This price movement has triggered a bullish trend across the cryptocurrency market.
OCEAN is among the tokens leading in the price gains. The crypto has been up by a significant margin during the past 24 hours, and these gains have mainly come from market support.
OCEAN is an ERC-20 standard token for the Ocean Protocol. The protocol is based on the Ethereum blockchain, and it seeks to enable data owners to use digital assets without compromising security and maintaining control over their data. The protocol allows developers to create a decentralized marketplace that records data and distinguishes the data depending on various factors. It also has a liquidity pool that allows trade settlement through smart contracts.
OCEAN’s price analysis
OCEAN was trading at $0.643 at the time of writing, having gained by 12.5% during the past 24 hours, according to data from CoinGecko. Like most of the cryptocurrencies in the market, OCEAN has made a major dip during the past month, and it has fallen by around 66% from its all-time high.
As seen from the chart above, OCEAN has been on a persistent downtrend since November. The cryptocurrency market peaked in November 2021, and some cryptocurrencies peaked towards all-time highs. OCEAN did not manage to reach these highs, and its last ATH of $1.93 was set in April last year.
OCEAN has managed to recover slightly during the past 24 hours, which could mean that the downtrend has reached exhaustion. If the uptrend continues, the next major resistance lies at $0.71. If the price reaches this resistance level when the market support is still strong, buyers could mount pressure to push OCEAN towards $0.92. A rally towards $1 is likely, but this will be determined by the amount of buying pressure the token can garner.
The current rally is being fuelled by an influx of short-term traders. These traders had stayed away from the market due to the fear of a bearish rally. If the trend reverses and the market makes a strong uptrend, these buyers could continue accumulating more and propel OCEAN to a major bullish rally.
Market support is also a key factor to OCEAN’s uptrend. If the market support holds, OCEAN will definitely rally. The reverse will happen if the market drops.
OCEAN could also make a dip
On the other hand, OCEAN’s uptrend could reverse at any time. In this case, the token will drop towards $0.59. this is the immediate support for the token that could be easily reached if the market slightly corrects. If buying pressure fails to hold, OCEAN will go further downhill towards $0.53.
OCEAN’s downtrend could proceed to an even sharper correction if buyers who have bought for the short-term uptrend start selling the token. This could push the prices towards further lows of below $0.40. OCEAN last traded below this price on July 21, when the entire cryptocurrency market was on a major downtrend. If it pushes to $0.34, OCEAN will be on a lower low, creating an opportunity for buyers to accumulate during the dip.
OCEAN’s dips and gains solely depend on the market support that could gain or drop at any time.
To learn more about this token visit our Investing in Ocean Protocol guide.
Read More: Ocean Protocol Makes Notable Gains as the Crypto Market Rallies
