OMG Technical Analysis: Reversal Within Falling Channel Lacks Momentum
OMG Network, formerly known as OmiseGo, is a layer-2, non-custodial scaling solution designed for an Ethereum blockchain. It is an Ethereum scaling solution, the network is designed to let users transfer Ethereum and ERC20 tokens considerably more quickly and less expensive than doing so directly through blockchain.
Let us move ahead to read about OMG Network technical analysis.
Past Performance of OMG
The OMG coin price continues to trend lower in the falling channel pattern present in the daily chart. The price falls more than 40% in a week, in its previous retracement from the resistance trendline. The price fall halts near the support trendline and shows a rise after a few days of consolidation near the trendline.
OMG Technical Analysis
The OMG coin price jumps come post-fallout of $5.15 level which is a crucial horizontal level, as per price action. Therefore, the recent jump comes as a retest of the fallout and a sudden reversal between the bullish cycle is possible.
The crucial Simple Moving averages show the falling 100-day SMA is on the verge of giving a crossover with the 200-day average. Moreover, the sellers at the 50-day SMA continue to provide bearish influence.
The MACD Indicator shows the fast and slow lines are on the verge of giving a bullish crossover as the bearish histograms lose intensity. Therefore, the indicator might soon give a buying signal.
The Stochastic RSI Indicator shows the K and D lines give a bullish crossover as they escape the oversold zone. Hence, the indicator projects the start of a bullish cycle.
Therefore, the technical indicators remain bullish for the OMG token with the recent price jump.
Upcoming Trend
The OMG technical analysis shows a bullish reversal within the falling channel after the 40% downfall. Therefore, the upcoming trend struggles to find bullish momentum despite the recent price jump.
Safe traders need to wait till the price breaks above the selling pressure of the resistance trendline. However, a selling opportunity will arise in case of a reversal from the trendline.
At the time of writing, TradingView gives a "SELL" signal for the OMG token.