OMG expects a 52% surge after a 12% retracement

  • OMG Network price is undergoing a temporary correction that may retest the $8 level.
  • The MRI warns of an incoming cycle top suggesting a pullback around the corner.
  • On-chain metrics show increased adoption and whale activity that warrant a rebound from a 12% retracement.

OMG Network price is facing the threat of a reversal that could pave the way for huge gains in the near future.

OMG Network Price Begins Correction

OMG Network price created two higher lows which formed a series of highs around the supply barrier at $7.97. If swing points are connected using trend lines, an ascending triangle pattern evolves.

The technical formation is inherently bullish and projects a 52% upside to $12.2, determined by adding the pivot high and low distance to the breakout point at $7.97.

On April 4, OMG exited the setup as it grew 40%. However, this uptrend stopped as it was facing a local high at $11.37. Since then, the OMG Network price has fallen almost 20% and shows signs of a continuation of this downward trend.

The main reason for such a downtrend is the preemptive cycle top signal given by the Momentum Reversal Indicator (IRM) in the form of a yellow candlestick on the 12-hour chart. A potential close above $8.7 will trigger a reliable cycle high signal, which predicts a one to four candlestick correction.

In such a case, the base of the ascending triangle at $7.97 will act as a stable demand barrier. Therefore, investors should keep a close eye on the $8.7 and $7.97 levels as these levels are crucial in establishing a direction for the OMG price.

OMG/USDT 12-Hour Chart

Supporting the short-term retracement is Santiment’s 30-day MVRV pattern for OMG Network price, which has climbed 30% and is also pulling back. This measure helps to identify whether market players are in profit or loss.

For OMG, 30% seems a reliable cycle top signal as investors have taken profits around this level, creating price tops on several occasions.

OMG MVRV 30 Day Chart

OMG MVRV 30 Day Chart

While the short-term picture looks bearish, the number of OMG network participants appears to be growing as the whales go on an accumulation frenzy. Such a combination paints a bullish picture, suggesting that a rebound from the $7.97 level seems likely.

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, demand hurdles are stacked up to $7.98. Therefore, a retracement beyond this level seems unlikely.

The absence of resistance levels up to $10.60 further confirms the 52% uptrend, where around 68,000 addresses that previously bought 4.36 million OMG tokens are “out of the money”.

During the reversal, the OMG Network price must break above these levels to signify the strength of the buyers.

OMG IOMAP Chart

OMG IOMAP Chart

New addresses joining the OMG network have increased by 100% in the last month. A total of 957 new market participants created new addresses, suggesting their interest in OMG at current price levels.

Table of new addresses OMG

Table of new addresses OMG

Similarly, transactions worth $100,000 or more have skyrocketed 2,400% in the past month. This surge serves as a proxy indicator of high net worth investor investment in OMG.

Table of the number of large transactions OMG

Table of the number of large transactions OMG

The bullish narrative for OMG Network price 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 OMG Network price could fall by 4.5% to $6.51.