The OMG Network (OMG) price has increased considerably since Sept 21. However, it looks more likely that the increase is corrective rather than the beginning of a new upward move.
The OMG price began its massive upward move in March 2020, which culminated with a high of $9.80 on Aug 21.
The higher prices could no be sustained though and OMG fell back shortly after. It left a long upper-wick in place, and eventually reached a local low of $2.48 on Sept 21.
OMG Long-Term Levels
Technical indicators are bullish. The RSI is above 50, the Stochastic Oscillator has made a bullish cross and is increasing, and the MACD looks to be making a turn upwards.
Long-term resistance and support levels are respectively found at $8.90 and $3. The former is the 0.382 Fib level of the previous decrease.
The daily price chart shows that the price is struggling to break out from the $4.15 resistance area as can be seen in the upper wicks poking through the zone.
However, technical indicators are relatively bullish. The MACD is increasing and the RSI is above 50. While it has not made a bullish cross yet, the Stochastic Oscillator is moving upwards.
If OMG is able to break out, the next resistance area would be found at $5.55. Conversely, the closest support area is found $2.60
In the short-term, there is considerable weakness in the form of bearish divergence in the RSI.
The most likely area for a reversal to end would be found between $3.27 and $3.53. These targets were found using the 0.618-0.786 Fib levels of the most recent increase and a potential ascending support line drawn from the lows since Sept 21.
Cryptocurrency trader @TheEWguy outlined an OMG chart, stating that OMG has likely begun a bearish impulse and the current movement is just a corrective increase, after which the price will make a lower-low.
The decrease from the Aug 21 high does look like a bearish impulse (in black below) with an extended third wave.
If true, then OMG is currently in the fourth wave, after which another decrease will likely ensue. An increase above the wave 1 low at $5.55 would invalidate this particular wave count.
The alternative count would suggest that the price has completed a W-X-Y correction with its Sept 21 low. However, the movement since (highlighted) looks corrective rather than impulsive, making it less likely to be the correct formation.
To conclude, the OMG price is expected to increase towards $5 before beginning another downward move.