- OMG/USD recovers from support at $3.40 and ready to post gains towards $5.50.
- A breakout above the triangle encourages more buyers to join the market as volume builds in support of the uptrend.
The OMG Network plugged massively like other major and minor coins in the cryptocurrency market. The decline swept widely across the digital asset space last week. OMG succumbed to the increased selling pressure leading to significant sabotage to the progress made in August.
From the high traded in August at $9.50, OMG Network plummeted to $3.30. At the time of writing, the crypto is trading at $3.80.
OMG/USD 1-hour chart
OMG Network technical analysis
After trading highs of $9.50, OMG/USD embarked on gains trimming exercise. Support at $5.00 was just, but a pit stop as the price quickly continued with the downtrend below a descending trendline. Support established at $3.30 cushioned the cryptocurrency from sinking deeper into the rabbit hole.
A recovery ensued following the support pulling OMG above $3.50. The formation of a descending triangle delayed the uptrend. However, a breakout above the triangle suggests a big chance for a massive flight, eyeing $5.50.
OMG/USD 4-hour chart
From a technical perspective, the breakout is well supported and, therefore, likely to occur. The Relative Strength Index (RSI) has commenced a gradual move towards the overbought region. This indicator is standard in technical analysis because you can tell the strength of a particular trend (bearish or bullish) with it.
For now, the trend is strongly bullish. If the 50 Simple Moving Average resistance at $4.00 is overcome, the price will quickly climb to the next hurdle at the 100 SMA ($4.70). Some more seller congestion is expected at $5.0 before OMG completes the leg up to $5.50.
OMG/USD weekly chart
The weekly chart still highlights the presence of both buying and selling pressure. However, buyers have a fighting opportunity and could take back control. Consolidation is likely between the recent support at $3.40 and the resistance at $4.0. The price is trading above the moving averages, suggesting that all is not lost for the bulls. Besides, the Elliot Wave Oscillator continues to print a bullish session supporting the recovery push from the bulls’ camp. In other words, the eventual winners of this tug of war are likely to be the bulls but expect a gradual recovery in the near term.