OmiseGO (OMG) is a decentralized financial network which utilizes the Ethereum (ETH) blockchain and smart contracts to offer peer-to-peer transactions and cross-chain interoperability solutions.
OMG first hit the markets in July 2017 and saw immediate success, growing 3000 percent in its first two months. The coin would more than double its all-time high in 2017 during the bull run that began in November, topping out at $26 in early 2018.
The coin is currently trading at $1.40 and is ranked 26th with a total market cap of $197 million.
Looking at the three-day and two-week RSI, we can see that, after crossing into overbought territory and hitting an RSI of 90, OMG has dipped back in the middle range.
Historically, once OMG has passed a value of 90, it has always gone back under the midline (blue dashed). This could indicate that the price will continue to slip back and settle at a new support.
It has now been nearly one year since OMG has reached its all-time high, and in that time span has lost more than 94 percent — an average loss when considering the total losses seen across the cryptocurrency market in 2018.
Similar to the majority of other digital assets on the market, OMG has fallen from the top within the bounds of a descending channel (pink) that is tightening as it moves down. This tapered channel is forcing the top descending trend line closer to the bottom descending support and will most likely cause a sharp move in either direction
OMG is hovering slightly above its 2018 low at the time of writing, and will most likely spend the remainder of 2018 establishing a new support level in the neighborhood between $1.20 and the psychological support at $1.Traders should be aware that there is not much in the way of supports beneath $1, and further declines could force OMG back to square one at $0.35. Click To Tweet
A short-term bounce could make for a positive trade, however, the next lower support level has not been fully tested just yet.
Do you think OmiseGO will ever be able to compete with similar platforms like Ripple? Will OMG slip beneath the $1 level before the end of 2018? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does not hold OMG.