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OMG Has the Potential for a Relief Rally Before Dropping Again

2 mins
Updated by Ryan Smith
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In Brief

  • OMG is trading between support and resistance at $2.65 and $4.30, respectively.
  • Short-term technical indicators are bullish.
  • The price is likely in the C wave of an A-B-C corrective structure.
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The OmiseGo (OMG) price has been increasing since Nov 4, when it bounced at the support area of its current trading range.
While the price could increase in the short-term, it appears that OMG is in a longer-term downward trend.

Long-Term Levels

OMG has been moving downward since it reached a high of $9.81 on Aug 21. The price was rejected sharply by the $9 resistance area and left a long upper wick in its wake. Since then, OMG has fallen by a full 62%. At the time of writing, the price was trading slightly above the $2.80 long-term support area. Despite this, the weekly Stochastic Oscillator has just made a bearish cross, a sign that the longer-term trend is likely still bearish.
OMG Long-Term Levels
OMG Chart By TradingView

Current Trading Range

The daily time-frame shows that OMG has been trading in a range between $2.65 and $4.25, currently changing hands above the middle of the range. The price reached the bottom of the range on Nov 4 and began to move upwards. OMG has almost reached the resistance area.
OMG Trading Range
OMG Chart By TradingView
Technical indicators support this rally. All three of the MACD, RSI, and Stochastic Oscillator are moving upwards. The RSI has just crossed above 50 and the Stochastic Oscillator has made a bullish cross. Therefore, the price should reach the $4.30 resistance area. However, due to the bearishness from the weekly chart, we cannot confidently state whether it will break out.
OMG Technical indictaors
OMG Chart By TradingView

Wave Count

Cryptocurrency trader @CryptoTony_ outlined an OMG chart, stating that the price has a final push before dropping sharply.
OMG Wave Count
Source: Twitter
Measuring from the previous Aug 21 high, it appears that OMG has completed a bearish impulse (shown in black below) and begun an A-B-C corrective structure (black). If waves A:C have a 1:1 ratio, which is common, the C wave could reach a high of $4.55, very close to the previously outlined resistance area.
OMG Wave Count
OMG Chart By TradingView
The shorter-term chart supports this, indicating that the price is in the fifth and final sub-wave (blue) which would complete the C wave. Connecting the tops and bottoms of waves A and B using a parallel channel provides a very similar target near $4.60, aligning with the previously mentioned targets.
OMG Short-Term Count
OMG Chart By TradingView


To conclude, while the OMG price is likely to increase in the short-term as it moves towards the resistance areas outlined, it’s likely that the price is still in a longer-term downward trend. For BeInCrypto’s latest Bitcoin analysis, click here! Disclaimer: Cryptocurrency trading carries a high level of risk and may not be suitable for all investors. The views expressed in this article do not reflect those of BeInCrypto


In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for...