- OMG Network’s price is being revised temporarily to retest the $ 8 level.
- The MRI warns of an incoming cycle top, suggesting a retreat around the corner.
- On-chain metrics show increased uptake and whale activity that warrants a recovery after 12% retracement.
The price of the OMG network threatens a reversal that could create the conditions for huge profits in the near future.
The OMG Network price starts correcting
OMG Network’s price resulted in two higher lows that formed a series of highs around the supply barrier at $ 7.97. When the pivot points are connected using trend lines, an ascending triangle pattern is created.
The technical formation is bullish by nature and forecasts a 52% rebound to $ 12.2, which is found by adding the Pivot High Distance and Low Distance to the breakout point at $ 7.97.
On April 4, OMG broke out of the setup with a 40% gain. However, that uptrend stopped when it faced a local spike at $ 11.37. Since then, OMG Network’s price has fallen nearly 20%, showing signs that this downward trend is continuing.
The main reason for such a bear market is the top signal of the preventive cycle, which is flashing from the Momentum Reversal Indicator (MRI) in the form of a yellow candlestick on the 12-hour chart. A potential close above $ 8.7 triggers a reliable cycle top signal that predicts a one to four candlestick correction.
In such a case, the base of the ascending triangle at $ 7.97 will serve as a stable demand barrier. Hence, investors need to keep a close eye on the $ 8.7 and $ 7.97 levels as these levels are vital in determining a direction for the OMG price.
OMG / USDT 12 hour chart
The short-term retracement is aided by Santiment’s 30-day MVRV model for the OMG network price, which has risen to 30% and is also in retreat. This metric helps identify whether market participants are making a profit or a loss.
For OMG, 30% seems like a reliable top signal for the cycle as investors posted gains at this level and set price caps several times.
OMG MVRV 30-day chart
While the short-term picture looks bearish, the number of participants in the OMG network appears to be increasing while the whales are on an accumulation frenzy. Such a combination paints a bullish picture, suggesting a rebound from $ 7.97 is likely.
Based on IntoTheBlock’s IOMAP (In / Out of the Money Around Price) model, the barriers of demand are stacked up to $ 7.98. A retracement above this level therefore appears unlikely.
Another confirmation of the 52% uptrend is the lack of resistance levels up to $ 10.60, with around 68,000 addresses who previously bought 4.36 million OMG tokens “out of the money”.
During the reversal, the price of the OMG network must rise above these levels to indicate the strength of the buyers.
OMG IOMAP chart
New addresses joining the OMG network have increased 100% in the last month. A total of 957 new market participants have created new addresses, which indicates their interest in OMG at the current price level.
OMG new address map
Similarly, transactions worth $ 100,000 or more have shot up 2,400% in the last month. This surge acts as a proxy for high net worth investors to invest in OMG.
Large number of transactions OMG chart
The bullish representation of the OMG Network price is based solely on a rebound in the demand barrier at $ 7.97. A critical close below $ 6.83 will invalidate the bullish outlook.
In such a scenario, the price of the OMG network could drop 4.5% to $ 6.51.