OMG network (formerly OmiseGo) weekly chart outlook for longer term future and gains !

OMG network (formerly OmiseGo) weekly chart outlook for longer term future and gains !

By Djordi | DJCrypto | 15 Jun 2020


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Hi everyone,

In this post I am going to show some weekly charts of OMG Network (OMG) and its outlook for the longer term future. Recently they changed their name from OmiseGo to OMG Network and they got listed on Coinbase. Developments are going on for this cryptocurrency and that is good news. They are currently ranked number 39 on Coinmarketcap.com with a market cap of 207 million dollars.

Here is a weekly chart compared to the dollar with the indicator OBV (On Balance Volume) :

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OMG network has been having a clear downtrend for years now and a lot of altcoins look similar. I drew a green channel to kind of show how price is moving inside it. The OBV is showing what smart money is doing and it looks pretty good for OMG as of late. You can see in price lower highs and lower lows, but OBV is showing higher highs and higher lows. This is bullish and usually volume precedes price. I drew small yellow lines to show a clear difference between price (lower high) and OBV (higher high). The last big spike in OBV is due to the listing on Coinbase and we have to see first how it will react during a correction. Before the listing on Coinbase the OBV was not even so good, so we have to be careful and see first if OBV is going to hold high while price is correcting, before you can really say that OMG has a good future in terms of gains. You can see as well with the green channel that OMG is not yet broken out of the downtrend channel, Right now it is once again at resistance.

Here is another weekly chart with the indicator Chaikin Money Flow (CMF) :

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Chaikin Money Flow shows buy pressure and sell pressure in a period of time. I drew a yellow line that is just to show that the selling pressure is declining over the years. This is a good sign and shows that slowly weak hands are getting less and strong hands are getting bigger. When looking at the buying pressure you can see that it is not all that much. Seeing that we are in a downtrend for years it is kind of normal and accumulation generally is a slow process with low volume and boring price action. One little thing to notice is that the last uptick has a little bit higher CMF of buying pressure compared to the last uptick. This might finally be a start of the beginning of a bull run for OMG Network.

Here is another chart on the weekly with Fibonacci levels :

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You can see on this chart that OMG Network has kind of hit the top for now (resistance of green channel) with a clear wick. I believe right now that we are in a corrective phase and we have to see how it will work out. OBV and CMF can show you how this correction is going to be. If OBV will show a strong trend towards the upper side and if CMF is showing once again a higher low in selling pressure, this would mean that OMG is ready to break out of the green channel towards the upside. Do you see OBV declining quite some and CMF showing more selling pressure again, it would mean that the Coinbase listing was just a pump and dump scheme. For now it seems to be doing alright so I lean more towards the first scenario.

When looking at price levels during a correction, you can use Fibonacci retracements levels. Right now OMG is moving in the 0,382 zone around 1,51$ level. In general when you have a big and swift move up, you will see a decent decline as well. Levels you can watch for is the 0,5 retracement at 1,277$, the 0,618 retracement at 1,03$ and worst case the 0,786 at 0,7067$. These could be levels to dollar cost average in for a long term trade.

OMG is dependent on Bitcoin like a lot of altcoins. If Bitcoin was going to move above 10.5K, the correction of OMG Network might be short lived, but if Bitcoin was going to retrace towards the 8K’s and 7K’s levels, you can see OMG moving towards the other Fibonacci retracement levels.

Future target levels for OMG in the longer run, if it breaks out of the green channel towards the upside are 2,83$, 3,53$, 6,50$ and 7,11$. These levels are based on several touches on the weekly chart in terms of old support that will now be resistance.

In conclusion I think that OMG Network is not looking bad at all. Chaikin Money Flow is showing a clear decline of selling pressure over the years and OMG got listed on Coinbase recently, which is great news for them. On Balance Volume has been moving up hard as well recently but this is due to the listing of Coinbase, so it is good to see how this indicator behaves during the correction OMG is in right now. The more likely scenario so far (when looking at OBV) is a positive scenario with a break out of the green channel towards the upside. If you want to go in already (0,382 fib level) you can double your money in a couple of months I guess, but If you have more patience and let price go towards the levels you want to dollar cost average (0,5 fib, 0,618 fib, etc.) you can make a lot better gains of around 5x. Depending on the FOMO and how everything moves it can even go a lot higher !

This is not financial advise and I am not a financial advisor. Please do your own research and make your own decisions.


Djordi
Djordi

I am Djordi van Kampen and I live in France. 2017 was the year I learned for the first time about cryptocurrencies and I am intrigued by what it can accomplish in this world, for the better of course !


DJCrypto
DJCrypto

Crypto enthusiast that would like to share his experience in the market in terms of investing and trading. Also travels a lot and likes photography and minerals.

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