• On-chain metrics are opening the Pandora box with OMG/USD likely to breakdown to $2.
  • OMG Network is building a bearish momentum following a rejection by the 50 SMA and 200 SMA.

The drab action across the cryptocurrency market is not sparing OMG Network. A bullish momentum put in place towards the end of September lost steam at $4.4 earlier in October. Over the last three weeks, OMG has narrowed beneath a descending trendline.

On the downside, support has been established between $3 and $3.2. However, recovery has not been forthcoming, especially with the widespread sluggish trading across the market.

OMG Network bearish signals getting stronger

The 4-hour chart presents a challenging resistance at $3.4, as highlighted by the 50 Simple Moving Average (SMA). As it stands, OMG has already been rejected by this resistance, but it is exchanging hands at $3.28.

In addition to the first resistance, both the 100 SMA and the descending trendline add intense pressure to the cryptoasset. The Relative Strength Index (RSI) reinforces the bearish outlook as it drops to the oversold region.

 Several on-chain metrics cement the bearish picture for OMG. For instance, a significant decrease in daily active addresses suggests that investors are dormant. Similarly, the volume has considerably gone done from its monthly peak on September 29.

The two metrics point to a diminishing bullish front. More declines are expected in the near term unless a massive price action takes place in Bitcoin.

OMG Network volume/daily active address chart

OMG/USD price chart

Consequently, Santiment's age consumed model shows little no movement of idle OMG tokens. In other words, the age consumed measures the number of tokens moved relative to the period they have stayed idle. The metric helps traders identify incoming volatility periods. For now, the low age consumed translates to the absence of volatility.

OMG Network age consumed chart

OMG age consumed

Looking at IntoTheBlock's IOMAP model, OMG Network is not likely to change the trend upwards anytime soon. Extremely challenging seller congestion zones lie ahead. For instance, one of the most substantial hurdles runs from $3.4 to $3.5. Here, roughly 2,300 addresses bought nearly 7.5 million OMG.

On the downside, the absence of strong support shows that there is room for bears to explore. The most robust buyer concentration area stands between $2.8 and $2.9. Here, an estimated 1,200 addresses previously bought about 5.4 million OMG.

OMG Network IOMAP chart

OMG IOMAP chart

Looking at the other side of the picture

It is worth mentioning that the bearish outlook's invalidation will only come into the picture if immediate support at $3.2 remains intact. A reversal past the 50 SMA and 200 SMA in the 4-hour chart may encourage more buyers to join the market.

The most significant resistance is the 100 SMA in conjunction with the descending trendline. If the price makes it above this zone, the next targets on the upside will be $3.8 and $4.4, respectively.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP