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OMG Technical Analysis: Restricted Movements Between the Resistance at $15.16 and Support at $12.58

cryptoknowmics.com 01 November 2021 10:19, UTC
Reading time: ~2 m

OMG Network is a non-custodial, layer-2 scaling solution built for the Ethereum blockchain. As an Ethereum scaling solution, OMG Network is designed to allow users to transfer ETH and ERC20 tokens significantly faster and cheaper than when transacting directly on the Ethereum network. OMG Network believes that Ethereum’s significant speed and cost barriers will need to be overcome before mainstream businesses will consider building their products and applications on the network.

Let us look at the technical analysis of OMG.

Past Performance

On October 25, 2021, OMG opened at $14.35. The price remained relatively stable during the past week. It closed yesterday at $13.40. This was a weekly change of 6.62%.

Source: https://www.tradingview.com/x/EmADUio8/

OMG Technical Analysis

The price chart can be seen to have restricted movements. These were between the resistance at $15.16 and the support at $12.58. The price once tried to break this support, but the attempt was unsuccessful. The current trading price of OMG is $14.11, which is 5.86% down as compared to the previous day’s close.

OBV is showing a horizontal line. This means that the buying and selling pressures are balancing each other, thus putting equal pressure from both sides on the price.

This neutral behavior can be attributed to the fact that OMG is not being in the news for a while, which is leading to reducing popularity.

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a Crypto.

The RSI graph for OMG is showing that it is moving close to the equilibrium for a while now. It is currently at 54.27%. This is again a neutral signal, suggesting traders to use the wait and watch approach.

The MACD line and the Signal Line, both are negative, but the distance between them is constant. This is again a signal for the traders to hold their positions.

Day-Ahead and Tomorrow

The indicators are showing that the traders are advised to hold their current positions and wait for a significant deviation in OMG before making a call. Meanwhile, they can keep the stop-loss at $11.32.

The FIB numbers show that the price is moving between the Fibonacci pivots at $11.97 and $15.83.

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