In this news Monday ATwe are going to look at a cryptocurrency that experienced the previous bull run, the OMG of the OmiseGO project. Using Ethereum, the project provides decentralized services, with the aim of improving transactions between companies. Regarding the price of OMG, it is clear that many storms have been experienced since 2017. But what can we say about the situation of the asset at the moment? Without further ado, let’s head over to TradingView to answer them.
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OMG is already under a pivot zone
First, we can put ourselves on theweekly scale to take a step back on the evolution of assets compared to recent years. Recently, OMG bounced off a technical area that is located at 1/$1.045 (represented in green) in order to register a rebound of more than 50% in recent weeks. However, this rise brought the asset to a pivot zone at $1.41/$1.51 under which it currently evolves.
The current challenge, on a weekly scale, is to determine the capacity of OMG whether or not to break free of the pivot zone. If the asset manages to post a close greater than $1.51 and to stay above, two objectives can be envisaged with a return of the course, initially, to 1.80 dollar. Secondly, if OMG also manages to break this level, it will take the path of 2.36 dollars.
However, nothing is decided yet on this time unit since a downward rejection will confirm the bearish breakout that took place last November. Thus, it will be necessary to consider the return of OMG on the $1 technical area. However, are they the only levels to monitor? We will now move on a smaller time frame to identify, if possible, additional technical levels on which the price could react.
The price is in trouble, will it preserve the bullish momentum?
We can see that the price is in trouble on the pivot zone. On this first day of the decline, the vsryptocurrencies are in the red, but this is not surprising after the significant rise that the market has experienced since the beginning of the week, especially since the coming week will also be very important given the numerous announcements relating to bank interest rates power stations. On the chart, two lower levels have been added in case OMG would continue its decline. The first level is at $1.33 (a former resistance), it will be necessary to watch the reaction of the price if it returns there.
That is OMG breaks downward and will head towards the $1.20the last level where the asset could bounce before returning to $1, or OMG manages to bounce off the $1.33 in order to maintain its upward trend. In this context, in the event of a resumption of the pivot zone, we have widened the zone where the price could react on the 1.80 dollar since it is there just below theEMA200.
If the price manages to overcome it, it is a good thing since the bullish momentum will be maintained, which will allow the price to take the direction of the $2.01/$2.05 before returning to the second level identified on the weekly scale.
Here we are at the end of this technical analysis of the cryptocurrency OMG. This week is crucial for the continuation of the uptrend on cryptocurrencies. However, the catalysts will be numerous, be it the decisions on interest rate hikes for the FED and the ECB as well as the financial results of a large number of American companies. Thus, the volatility will be high and will aim to drive out those who place themselves too quickly on both sides of the price. As a result, regarding the OMG cryptocurrency, it will be necessary to monitor its reaction to the pivot zone and its ability to preserve the uptrend. However, it is obvious that this will largely depend on the bitcoin reaction and Ethereum which together drive the momentum in the cryptocurrency market.
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