OMG on its way to massive move as $ 8 beckons you

  • The OMG network supports an uptrend within the limits of a parallel ascending channel.
  • The trading history reveals the absence of resistance, validating the recovery.
  • Failure to close the day above the immediate resistance at $ 7 could result in a correction towards $ 5.

OMG Network has supported an uptrend from the adopted support at $ 4. An ascending parallel channel since March has held the bears in check. However, the upward price action is still limited by the resistance of the upper bound. Further gains are expected as soon as OMG removes this hurdle and stabilizes above $ 7.

OMG Network traces the path to recovery at $ 8

As of this writing, OMG is teetering at $ 6.8 as the bulls fight resistance at the upper trendline of the ascending channel on the 12 hour chart. By trading above this level and by extension, the seller’s congestion at $ 7 would open the door to gains of up to $ 8.

The asset’s bullish outlook has been validated by the Moving Average Convergence Divergence (MACD) indicator. The MACD line (blue) increased the divergence of the signal line, entering the positive region. This shows that the trend will remain upward in the short term.

12 hour OMG / USD chart

The IOMAP model reveals that OMG Network faces little resistance with its recovery mission. Nonetheless, traders should anticipate delays between $ 7.63 and $ 7.84. Here, nearly 5,000 addresses purchased previously around 719,000 OMG. Trading above this area would pave the way for gains above $ 8.

On the downside, the pattern highlights robust support between $ 6.4 and $ 6.6. Here, 3,300 addresses have already collected 6.3 million OMGs. OMG is unlikely to cross that level in the near term, adding credit to the bullish narrative.

OMG network IOMAP chart

OMG network IOMAP chart

It should be mentioned that the expected move to $ 8 would not be achieved if the seller’s congestion at $ 7 and the upper trendline of the ascending channel remained intact. Additionally, air pressure may increase if OMG Network closes the day under the above obstacles. On the downside, losses should increase towards $ 4, especially if the lower bound support breaks.