OMG Technical Analysis: Prices to Fall Under $5 Level  

Vikram  |  Sep 22, 2021

OMG coin price is under tremendous selling pressure. Investors can soon have the opportunity to buy at the most significant dip.

The OMG Network project aims to make Ethereum more attractive and scalable while simultaneously cutting down its carbon footprint. It achieves this with its plasma-based sidechain solution. As a result, it helps reduce electricity usage by up to 99% when compared to Ethereum and cuts fees by around two-thirds. Meanwhile, ensuring assets remain secured by the underlying Ethereum network.

Past Performance of OMG

On September 18th, OMG coin price found demand near the parallel channel’s support trendline. This resulted in the upside movement of 25% over the next three days. However, the supply near the resistance trendline caused a bearish engulfing candlestick pattern leading to a fall of 17%.

Source - Tradingview

OMG Technical Analysis

OMG coin price is trading at $8.89 at the time of writing, with a fall of 17.34% in the past 24 hours. This results in the bearish engulfing candlestick pattern, which indicates high selling pressure. Moreover, OMG is forming a narrow range on the daily chart. Therefore, a breakout on either side will provide a better trend direction. However, investors need to stay cautious as the bearish breakout possibility is more prominent. A breakdown will cause a downfall to the support level of $4.5.

Furthermore, the bullish breakout of the channel is always a possibility until the pattern’s fruition. In such a case, the resistance levels are $10.5 and $13. 

The exponential moving averages of 50-day and 200-day provide support for the token price below the rising channel. Moreover, both the EMAs rose higher in a bullish alignment. Thus, indicating underlying bullishness is still in the game.

On the daily chart, the MACD and signal lines are above the zero mark. However, the bearish crossover by the MACD line over the Signal line indicates the overall market momentum seems bearish. Thus, investors can expect the OMG price to fall for a day or so.

Currently, the RSI indicator is moving slightly above the central line in the daily chart. The RSI slope finds support near the 50% mark after a rejection near the 66% level. However, the slope is falling despite the recent rise in the OMG crypto. Thus, resulting in a bearish divergence pattern. Henceforth, investors can expect a fall below 50% in the upcoming days.

Day-Ahead and Tomorrow

OMG token price is taking support at the bottom of the rising channel. However, the increase in selling pressure, along with the bearish indication mentioned above, warn investors to stay careful. Moreover, investors hoping to buy the dip can wait for a more significant correction in the OMG price.

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