OmiseGo Rises Higher After Losing Support (Price Analysis for OMG: March 8)

Key Highlights For March 8, 2019

• Price reached a high of $1.567 on Feb 24.
• It dropped to a low of $1.266.
• Another low of $1.156 on Mar 4.
• It is trading inside an ascending channel.
• There is bearish divergence developing in the MACD and RSI.
• There is resistance near $1.29.
• There is support near $1.15.

Movement Toward Support

On Mar 5, 2019, BeInCrypto performed a technical analysis of OmiseGo. We reported that OMG had moved below its previous support late on Mar 3 with continuing decreases throughout early Mar 4. Between Mar 4 and 5, price subsequently began to increase. We projected that:

As long as prices continue rising—and OMG returns above the support—OMG may move back inside the trading range between $1.28 and $1.40.

On Mar 8, this projection was validated.

Check Out Our March 5 Analysis of OMG By Clicking Here

For a more detailed and updated analysis, keep reading.

Previous Support

The Price of OmiseGo (OMG) on Binance is analyzed at two-hour intervals from Feb 24 to Mar 3 The price made a high of $1.567 on Feb 24. A sharp drop took it to $1.266. It revisited the same level four times. Tracing these lines creates a horizontal support line. The dates in which the line was touched are:

• Feb 24
• Feb 27
• Mar 2 (twice)

The support line can act as a floor to price, effectively preventing any further downward movement. The $1.28 level is chosen for the support line and not the actual Feb 24 $1.266 low since the $1.266 level is not revisited again. The Mar 2 and Mar 3 lows are $1.274 and $1.276 respectively. The breakdown below the support line by a wick in a volatile market is relatively unimportant as long as it is not succeeded by continued breakdowns. In the case of OMG, a low of $1.222 was experienced on Feb 7; however, the price rebounded and a close above the support line was registered.

Support Turns To Resistance

The price of OMG on Binance is analyzed in two-hour intervals from Feb 24 to Mar 8. The price broke down from the support line near $1.28 on Mar 4. A rapid price decrease ensued. Price made a bottom at $1.567. It revisited the $1.28 level five times. Tracing these lows gives us a horizontal resistance line. The dates in which the resistance line was touched are:

• Mar 5
• Mar 6
• Mar 7 (twice)
• Mar 8

The resistance line can act as a ceiling to price, preventing further upward movement. However, a breakout above can lead to rapid price increases. A breakout occurred on Mar 8, and a rapid price increase appears to be underway.

What Lead To The Breakout?

The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move. Combined with simple moving averages (SMA), MACD can be used as a trigger for buy and sell signals. Signals are triggered whenever the MACD line is above 0 and the price is above the 21 (red) and 50-period (green) SMAs. The price made a low of $1.156 on Mar 4. It has created higher lows since. Tracing these lows gives us the ascending support line. The resistance and support lines combine to create an ascending triangle, which is a bullish pattern. The dates in which the support line was touched are:

• Mar 4
• Mar 5
• Mar 8 (twice)

On Mar 6, the price moved past the 21 and 50-period SMAs. Similarly, the MACD moved past the 0 line. This movement would have triggered a buy signal, indicating that an uptrend may be starting and higher prices may be in store for the future. The signal preceded the triangle breakout which occurred on Mar 8. The uptrend would be invalidated by a price movement below the SMAs and a MACD line cross below 0.

Future Movement

Resistance and support areas are formed when the price reaches a certain level several times. They can act as a ceiling/floor that prevents the price from moving further in that direction. The first area of resistance is found near $1.32. The second one is found near $1.39. If price were to reach them, they would provide likely reversal areas. The closest support area is found near $1.189 Based on this analysis, the price of OMG is likely to keep trading above the support line and head for the resistance areas. If the price keeps trading close to the first area, this prediction will be partially validated. If the price reaches the resistance area near $1.18 it will be fully validated. Do you think the price of OMG will continue its upward journey or will it breakdown along the way? Let us know your thoughts in the comments below. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.