OMG Network Technical Analysis: OMG/USD explosive breakout eyes $10.00 if $7.00 resistance is overcome

OMG Network, former known as OmiseGo has rallied to become one of the most improved digital assets in August. From trading in a tight range between $1.00 and $2.00, OMG has achieved a new yearly high at $6.96. Despite the majestic price actions that have entered week two, the altcoin’s technical health remains intact.

OMG Network partnership with Tether

The more than 225% gains in seven days have been attributed to a grand partnership the OMG Network signed with the leading stablecoin in the industry, Tether (USDT). The partnership saw OMG Network put to work its Layer-2 solutions. This integration is tailored towards circumventing the clogging on the Ethereum blockchain. It is also meant to significantly bring down the cost of transactions and increase transaction speeds. A statement by the OMG Network CEO, Vansa Chatikavanij in regard to the partnership said:

We’re excited to announce the launch of Tether on the OMG Network that supports thousands of transactions per second at a third of the cost of the same transaction on Ethereum. We’re delighted to address these fundamental issues and drive further growth and adoption of open financial services.

OMG Network technical picture

OMG is trading at $6.80 at the time of writing. It has slipped downwards from the monthly high of $6.96. All eyes are glued on breaking above the short term hurdle at $7.00. Bulls intend to build on this breakout for another well-orchestrated rally to $10.00 in the medium term. All indicators point towards the extension of the bullish action in the last seven days including the RSI has it settled in the overbought zone and the MACD as it moves higher in the positive region.

The immediate downside is protected by an accelerated trendline (broken line). Support is eyed at $6.00 in the event of a reversal. Further losses will seek refuge at $4.00, the 50 SMA, and 100 SMA in the 2-hour range. For now, the price is in the hands of the bulls, therefore, the path of least resistance is to the north.

OMG/USD 2-hour chart