The cryptocurrency markets saw a large capitulation as the entire market cap for the industry fell from above $253 billion to as low as $180 billion. This was largely a result of Bitcoin tumbling back beneath the support at $9,000 and dropping as low as $6,500.

This market wipeout caused the entire altcoin market to drop drastically as well. OmiseGo was also heavily affected by the capitulation as the cryptocurrency dropped by a total of 38% in November alone to reach the current price of around $0.73 (as of November 26th, 2019). 

OmiseGo had started the year on a bullish note as the cryptocurrency surged by a total of 215% from the February low to the June 2019 high of $3.19. However, this is when things started to turn very sour for OMG as the coin rolled-over and started to fall at an alarming rate. The cryptocurrency continued to fall through the summer months until arriving at support around $0.72 in October 2019. By this time, OMG had already lost a total of 76% from the 2019 highs.

Nevertheless, I still believe that OmiseGO still has a very bright future ahead of itself in 2020. The project is well on the way to developing their Plasma solution that will eventually be implemented into Ethereum to provide scalability. The team is also constantly focused on improving the stability of its network after the release of the Samrong update. Furthermore, development activity stats suggest that OMG is still progressing at a great pace and with a parent company such as Omise and board advisors such as Vitalik Buterin himself, it is hard to suggest that OmiseGo will not progress during 2020.

For these combined reasons, I strongly believe that, despite the recent awful price capitulation, OmiseGo still has the potential to surge by a total of 350% to reach my target of $3.30 at some point during 2020.

In this article, I’ll firstly cover a range of topics that I believe will influence OMG in reaching my $3.30 target during 2020 and then analyze OMG on the long term daily charts to highlight some areas of resistance on the way toward the target.

OmiseGo - A Project Designed To Include EVERYBODY

Omise is an already established Thailand-based payment company that provides financial service to businesses and individuals across Sout-East Asia. They are the parent company to OmiseGo - the cryptocurrency project itself! 

The entire purpose of the OmiseGo project is to decentralize payment networks and to create a financial system that can be accessible to anybody in any country and can also manage a large range of applications.

The project has always lived by the motto “Unbank the Banked” as it aims to provide FinTech services and solutions to everybody to change how payments are made today. 

OmiseGo was founded by Jin Hasegawa and Donnie Harinsut who launched OMG as ERC-20 token in 2015. The team can boast a range of highly skilled and experienced individuals, however, none are more well known as Vitalik Buterin, the founder of Ethereum, who serves as an advisor to OmiseGo.

To find out more about OmiseGo, take a look at this great in-depth piece!

So, What Are OmiseGo Actually Doing?

To achieve their goals of providing FinTech services on a mass scale, the team has always known that they would have to release an entire suite of software for the community to be able to use. This includes a white-label SDK to create custom financial products, a decentralized exchange (DEX) with an algorithm that ensures compatibility between different blockchains, and the OmiseGo eWallet Suite. 

The OmiseGo eWallet Suite is one of their flagship products as they always had the aim of this to be used to link business customers to digital marketplaces. This has already been successful considering the fact that Burger King Thailand launched its own version of the eWallet using the OmiseGo eWallet Suite, allowing them to create a loyalty program for all of its customers.

OmiseGo Release Samrong To Increase Reliability

The team released OMG Network v0.2 in May 2019 and it is known as Samrong. This is the second iteration of the OMG network to make it more reliable and less prone to downtime when faced with high network load. It was implemented as a separate network from the previous Ari testnet network, however, Ari was shut down in July 2019. 

The upgrade comes with an improved Plasma integration with changes to Plasma smart contracts. It also now allows for new transaction signatures using EIP 712 allowing users to sign transactions with wallet integrations such as Metamask.

Expanding Ethereums Ecosystem

OmiseGo’s plasma implementation is a second-layer scaling solution that allows scalability that will outstrip VISA with thousands of transactions per second (TPS). Plasma will act as a second layer that will sit on top of OMG blockchain (and eventually Ethereum) and handles a large volume of transactions. 

Plasma will allow projects like Ethereum to achieve scalability - something that has long held the decentralized operating system back for a very long time.

Their version of Plasma has often been described as the most complex and effective option available. It is split into Root chains (Ethereum) and Child Chains (OmiseGo). The root chain is designed for the function of settlement and also acts as a security layer for the network. The child chain settles different things (such as smart contract executions) without the need to report back to the root chain for every confirmation.

To find out more about how OmiseGo’s Plasma solution can bring scalability to Ethereum, take a look at this post!

However, although Plasma will truly change the game, people are complaining that it is taking much longer than expected to be implemented. Currently, the team is working on Plasma Bootstrap which allows users to deploy a local plasma chain simply as it provides a GUI to generate the scripts needed to deploy the chain. 

OmiseGo Developer Program

The OmiseGo Developer Program (ODP) is set up to help the product development process. The program is aimed at developers who would like to build their own products and services on top of the OMG network. 

The ODP is designed to help with the testing of Proofs-of-Concept (PoCs) to gain insight and feedback. 

The participants of the ODP program will also become Alpha testers for products before they are released for a public Beta. 

Programs like these help the developers to continue to focus on their own work whilst extensive testing can be done through the program. If any faults are found in the system, the developers will be able to instantly attack the threat after receiving data from the program participants.

Whilst we are talking about development, data from Santiment clearly shows that developmental progress within OMG continues to thrive throughout 2019;

OmiseGo (OMG) Price Analysis

LONG TERM - DAILY CHART

What Has Been Going On?

Analyzing the long term daily chart above, we can clearly see the strong start to the year that OMG had seen. The cryptocurrency surged from the February low of $1.00 and continued to rally as the months progressed. 

In June 2019, the cryptocurrency had managed to break above resistance at the 200-days EMA as OmiseGo traveled further higher to meet resistance at the 1.272 Fibonacci Extension level (drawn in yellow) priced at $3.02. OMG did spike higher into the $3.20 region but the coin quickly rolled over.

After reversing at the 2019 high, OmiseGo started to fall precipitously. The coin penetrated beneath the 200-days and 100-days EMA in July 2019 and continued to drop by a total of 50% in this month alone.

OmiseGo had managed to find some form of salvation in October after reaching support at $0.72 which is provided by a very long term downside 1.272 Fibonacci Extension level (drawn in purple). The cryptocurrency rebounded from here in October but failed to make any movement above the resistance provided by the 100-days EMA at around $1.10.

In the current month of November 2019, we can see that OMG dropped back into the current support after the period of capitulation within the industry. 

Are We Bullish Or Bearish (as of November 2019)?

As of November 2019, we are most certainly bearish - some would even suggest STRONGLY bearish. The market is doing its best to hold the support at $0.72 but after the recent bearish activity, we can only assume that this market will be heading lower before it can start to climb again.

If the sellers do push OMG beneath the support at $0.72 and $0.70, we can expect immediate further support toward the downside to be located at $0.6750. We can see that OMG has already bounced from this level of support. 

Beneath $0.60, support can be found at $0.59, $0.55, and $0.50. The support at $0.50 should provide enough incentive to stop the sellers from releasing further bags and, hopefully, allow a reversal occur through 2020. 

Where Is The Resistance On The Way Up TO $3.30?

When OmiseGo does finally decide to reverse, whether it be at $0.72, $0.67 or $0.50, we can expect the first significant level of resistance to be located at the psychological round number handle of $1.00. This is then immediately followed with higher resistance at $1.05 where lies the 100-days EMA.

Above this, resistance lies at $1.35 (200-days EMA), $1.50, and $1.64. The resistance at $1.64 is provided by a bearish .382 Fibonacci Retracement level that is measured from the June 2019 high to the current November 2019 low ($0.67).

Higher resistance can then be expected at $1.80, $1.98 (bearish .5 Fib Retracement), $2.00, and $2.23 (bearish .618 Fibonacci Retracement). If the buyers can continue to bring the market above resistance at $2.66, we can expect strong resistance to then to be located at $2.83 (1.272 Fibonacci Extension level - drawn in yellow). This level had provided serious resistance to the market during 2019 and is expected to provide equal resistance moving forward.

If the bullish pressure continues to push OMG higher, resistance lies at $2.91 (bearish .886 Fib Retracement),$3.00, and $3.02 (1.414 Fibonacci Extension level). If the bulls can clear these levels and proceed higher, they will be free to make an attempt at my 2020 target of $3.30 which is provided by the 1.618 Fibonacci Extension level.

Conclusion

OmiseGo really has suffered terribly during 2019, especially when we consider the fact that it is down by a total of 46% from the 2019 opening price. However, the development over at OmiseGo continues to strengthen as the team tirelessly works on releasing their highly anticipated Plasma solution that is slated to bring scalability to Ethereum. 

The current state of the OMG market does suggest that lower price movements may be imminent. However, I have outlined some major levels of support that I believe will certainly allow for a reversal - particularly at the $0.50 level.

For OmiseGo to be able to reach my $3.30 target at some point in 2020 the cryptocurrency must first overcome resistance at $1.00. Above this, strong resistance lies at $1.64, $2.23, and $2.83. If the bulls continue to drive OMG above resistance at $3.02, we can expect the market to test my 2020 prediction of $3.30.