- The OMG network price is undergoing a temporary correction which may retest the $ 8 level.
- MRI warns of an incoming cycle top suggesting a pullback around the corner.
- On-chain metrics show increased adoption and whale activity that justifies a rebound from a 12% retracement.
The price of the OMG network is threatened with a reversal that could pave the way for huge gains in the near future.
OMG network price starts to correct
The OMG Network price created two higher lows which formed a series of highs around the supply barrier at $ 7.97. If the oscillation points are joined using trend lines, an ascending triangular pattern evolves.
Technical formation is inherently bullish and projects a 52% rise to $ 12.2, determined by adding the high and low distance from the pivot to the break point at $ 7.97.
On April 4, OMG exited the configuration as it rose 40%. However, this uptrend came to a halt as it faced a local high at $ 11.37. Since then, the price of the OMG network has fallen by almost 20% and shows signs of a continuation of this downward trend.
The main reason for such a bearish trend is the preemptive cycle start signal displayed by the Dynamics Reversal Indicator (IRM) as a yellow candlestick on the 12 hour chart. A potential close above $ 8.7 will trigger a reliable cycle top signal, which predicts a correction of one to four candlesticks.
In such a case, the base of the ascending triangle at $ 7.97 will act as a barrier to stable demand. Therefore, investors should keep a close watch on the $ 8.7 and $ 7.97 levels as these levels are crucial in establishing direction for the OMG price.
OMG / USDT 12 Hour Chart
Santiment’s 30-day MVRV pattern for the OMG network price, which has climbed to 30% and is also declining, supports the short-term retracement. This measure helps to identify whether market participants are primarily making a profit or a loss.
For OMG, 30% seems a reliable cycle top signal as investors have registered profits around this level, creating price highs several times.
OMG MVRV 30 Day Chart
While the near-term picture looks bearish, the number of participants on the OMG network appears to be increasing as the whales embark on a wave of accumulation. Such a combination paints a bullish picture, suggesting that a rebound from the $ 7.97 level looks likely.
Based on IntoTheBlock’s In / Out of the Money Around Price (IOMAP) model, demand barriers are stacked up to $ 7.98. Therefore, a retracement beyond this level seems unlikely.
The lack of resistance levels up to $ 10.60 further confirms the upward trend of 52%, where approximately 68,000 addresses that previously bought 4.36 million OMG tokens are “out of the money”.
During the reversal, the OMG network price must exceed these levels to signify the strength of buyers.
OMG IOMAP card
New addresses joining the OMG network have grown by 100% over the past month. A total of 957 new market participants created new addresses, suggesting their interest in OMG at current price levels.
Table of new OMG addresses
Likewise, transactions valued at $ 100,000 or more have climbed 2,400% in the past month. This push serves as a proxy for the investment of high net worth investors in OMG.
Table of number of OMG large transactions
The OMG Network’s bullish price narrative is based solely on a bounce around the demand barrier at $ 7.97. A decisive close below $ 6.83 will invalidate the bullish outlook.
In such a scenario, the price of the OMG network could drop 4.5% to $ 6.51.