OMG Network flashes sell signal as bears look to take charge

OMG/USD price is above $3.40 but could drop to lows of $3.00 as suggested by the TD sequential indicator.

OmiseGO (OMG) is up 7.7% in the past 24 hours and the bulls look to strengthen above a crucial resistance level. However, the technical picture suggests that the price of OMG Network’s token could slip to lows of $2.60 if the bears strengthen their case as seen on the hourly chart.

OmiseGO price hourly chart

OMG price on the hourly chart shows a sell signal has formed in the last few hours, with the value of the token against the US dollar trading down from highs of $3.51 to lows of $3.31.

On the 4th of November, OMG/USD traded at a low of $2.62, with downward pressure contributing to the decrease in price. An influx of buyers, however, pushed the token upward. A decent rebound in the sessions that followed then took it to highs of $3.45. But bears refused to cede further ground and the price plummeted again to $2.96 after a sell signal flashed on the hourly chart.

Another bounce established support levels above $3.00, but the existence of a stubborn resistance line above these zones suggests that OMG/USD remains vulnerable to another downside. To support the outlook is the TD sequential indicator that is suggesting a bearish flip as can be seen in the chart below.

OMG price hourly chart suggesting short term bearish flip.

The TD sequential indicator on the hourly chart for OmiseGO has formed a green nine candlestick. The indicator suggests bears could push prices as low as 100-hourly simple moving average at $3.20. Beyond this level, further damage could see the bulls rely on the massive support wall provided by the 200-SMA near $3.06.

OMG daily chart
OMG price daily chart.

The daily chart suggests the bearish flip on the lower time frame might be short-lived as bulls are looking strong. However, they will need to close above $3.50 to retain the upper hand. The RSI indicator shows buyers are beginning to take control, although that could fail to hold if prices fall back below the 50-SMA line at $3.33. The area has acted as a stubborn resistance line since the 25th of 0ctober.

If they break seller resistance at the 50-SMA, buyers can aim at the 100-SMA near $3.46 and open up a path to the next target at $4.00.

Conversely, a breakdown will spell short term trouble for buyers. As of now, the area near $3.06 is the only major support zone, which had also helped absorb the downward pressure on the 7th of November.

If increased downward pressure materialises, the prices could drop to $2.62 and then to the 21st of September lows of $2.44.

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