OMG Technical Analysis: Price Has Broken the Fibonacci Resistance Point of $12.40

Ankita  |  Oct 1, 2021

Before mainstream businesses will consider building their products and applications on Ethereum, OMG Network believes the network's significant speed and cost barriers need to be overcome. The project aims to make Ethereum more attractive to businesses and projects that want to scale while simultaneously reducing their carbon footprint. Let us look at the technical analysis of OMG.

Past Performance

On September 24, 2021, OMG started trading at $9.88. As of September 30, 2021, the closing price of OMG was $12.47. Thus, in the past week, the price has surged by roughly 26.14%. In the last 24 hours, OMG has traded between $10.73-$12.54.

TradingView Chart

OMG Technical Analysis

OMG is forming a rounding bottom pattern on the daily chart. It is a bullish chart pattern. A breakout from the resistance level will unleash OMG to form new highs. The price has been consolidating since the May 19th crash.

Currently, OMG is trading at $12.36. The price has increased by approximately 12% from the opening price. Thus, the market looks positive.

The MACD and signal lines are positive. However, a bullish crossover by the signal line over the MACD line has occurred. The overall market momentum is bullish, and we can expect the price to rise.

The OBV indicator is gradually rising. Thus, buying volumes are higher than selling volumes. Hence, we can expect the price to also rise.

The RSI indicator is at 70%. It has just rallied after taking support from the 52% mark. Thus, buying pressures are slowly mounting. Hence, we can expect the price to start rising again in a few hours.

Day-Ahead and Tomorrow

The OMG price has broken the Fibonacci resistance point of $12.40. As some of the oscillators have shown bullish signals, we can expect the price to rise to the first resistance level of $13.12 soon. Traders can take a long position accordingly.

However, if the price is below the 23.6% FIB retracement level of $11.87. If the price falls below the FIB extension level of $11.87 in some time, this implies that the price downtrend is strong. In that case, the price downswing is likely to continue tomorrow as well.

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