OmiseGo Network Utility Jumps and Prices May Follow
A wave of new developments has hit the OmiseGo (OMG ) Network, propelling its price to new yearly highs.
OmiseGo’s Utility Expands
The OMG Network, also known as OmiseGo, stole the spotlight in the cryptocurrency industry after its price skyrocketed, outperforming the rest of the market. Ever since Coinbase Pro announced that it would be adding support for this ERC-20 token, it entered a bull rally that saw the token rise over 200%.
OMG went from trading at a low of $0.76 to a new yearly high of $2.27 in a matter of seven days.
Although the sudden upswing appears to have reached an exhaustion point, the utility of this token is fast expanding, igniting a further upward advance.
The team behind it rolled out a Layer-2 scaling solution for Ethereum called Plasma that reduces costs by 66% and increases the processing capacity of the network. Hong Kong-based cryptocurrency exchange Bitfinex was one of the first firms to announce that it will take advantage of this product to deliver faster and cheaper Tether (USDt) transactions.
“By migrating USDt value transfers to the OMG Network we save costs, drive performance improvements and relieve pressure on the root chain network. This is good for Bitfinex and our customers, and the whole Ethereum ecosystem,” said Paolo Ardoino, CTO at Bitfinex.
Along the same lines, Vansa Chatikavanij, CEO at OMG Network, affirmed that the partnership will help alleviate some of the fundamental issues on Ethereum, which is vulnerable to severe network congestion.
Chatikavanij said the OMG Network supports thousands of transactions per second at a third of the cost than on Ethereum.
“This will allow traders to react faster to trading opportunities and take advantage of arbitrage more efficiently between exchanges as the network grows,” added Ardoino.
Social Engagement Metrics Explode
Following the announcement, data from crypto insights provider LunarCRUSH show that OMG saw a significant spike in its social engagement metrics. The firm reported that over the last few hours more than 650,000 interactions about this ERC-20 token were registered.
Roughly 74% of all comments, replies, retweets, quotes, shares, and other metrics across all social network platforms have been bullish about the OMG Network, according to LunarCRUSH.
Alongside the spike in social activity, OMG’s price surged nearly 23%. And the Fibonacci retracement indicator reveals that if the buying pressure behind this cryptocurrency continues, it may continue its advance.
The most significant resistance level at the moment is the 23.6% Fib level that sits at $1.80. Turning this supply barrier into support may help the OMG Network retest the recent high of $2.27.
But if demand is significant enough, OMG could be poised to reach a new yearly high of $2.8.
On the flip side, investors should pay close attention to the 38.2% Fib level because a bearish impulse that breaks this support would jeopardize the optimistic outlook.
If this were to happen, the next significant levels of support are represented by the 50% and 61.8% Fib levels. These supply walls sit at $1.3 and $1.1, respectively.
As the OMG Network continues leading the headlines in the cryptocurrency market, crypto enthusiasts must remain cautious of getting caught on the wrong side of the trend. The high volatility around this altcoin could flush out weak hands before continuing its uptrend.
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