OMG faces strong resistance that threatens its uptrend

  • OMG price’s recent breakdown from an ascending parallel channel appears to have stalled around a critical support level.
  • The mounting selling pressure could lead to a new retracement given the lack of significant support under this altcoin.

After a 21% correction, OMG Network price seems to have found steady support around $3.30. Either way, a massive supply barrier ahead could push the action higher in price and lead to further losses.

OMG price faces an uphill battle

OMG Network price is currently trading at $3.40 after bouncing off the 50% Fibonacci retracement level. Although the recent bullish impulse looks promising, multiple bearish signals threaten further advance.

For example, the Parabolic SAR indicator shows a dominant downtrend that started on January 7th.

OMG/USDT 1 hour chart

Additionally, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows a huge resistance barrier that could prevent prices from rising. Based on this on-chain metric, around 54,000 addresses had already purchased 1.1 million OMG around the $3.80 area.

Such a massive supply barrier will be difficult for the bulls to overcome, as holders of this range will likely attempt to exit their underwater positions. The increase in selling pressure could reject the OMG price and lead to further losses.

OMG IOMAP Award

OMG IOMAP

Indeed, a rejection of the $3.80 level seems likely as it coincides with the 78.6% Fibonacci retracement level. If this were to happen, the OMG Network price could once again head towards the 50% Fibonacci retracement level at $3.10.

It should be noted that a break of the overhead resistance at $3.80 can be considered extremely bullish for the ERC-20 token. Breaking through this wall of supply, OMG price could target the next area of ​​considerable interest around $5.