OMG Price Analysis: Time To Retest The Breakout

  • OMG price which gave a breakout on Feb 1, 2021, are at a strong resistance zone
  • OMG price are likely to decline to retest the breakout

OMG price that surged 18% on Feb 1, 2021, have shown some profit booking in today’s session, suggesting that bulls are likely to exit the trade considering the strong resistance zone of $4.12-$4.3. The market cap and 24-hour volume of the coin are $555,007,447 and $256,868,631 respectively. 

OMG Prices Likely to retreat To Find Support, Wait For Confirmation 

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OMG price are restricted in a channel of $2.5-$4.12 made another unsuccessful attempt to break out; however this time the bulls aimed for the breakout from a diagonal resistance, instead of attempting to break the channel.

It appears that the coin needs support which might be provided by the 10EMA($3.57), 20EMA($3.56) and 50EMA($3.42). Apart from the above, the VWAP is acting as a resistance at the $4.1 price levels against the LTP $3.98. 

The volumes have gone down, which means that the trend is getting weaker; meanwhile, the price range volume analysis shows almost the same buying and selling volume. Hence, the coin may get consolidated unless the volumes change. 

The Bollinger Bands(10EMA) have smoothened a bit today, which signals a decline in the coin’s volatility. Both the buying and selling volatility is declining, which means that the traders are indecisive of the coin’s direction. The lower BB and median(10EMA) are pushing the coin up from the levels of $3.00 and $3.57, respectively. The upper band is a resistance for the prices at $4.15. 

The RSI, just like the prices, was sideways in a channel between 45 and 67 levels. RSI has been rejected by the 65 levels again, which increased the possibility of a decline in trend’s strength. 

The MACD(8,21,5) has signalled the bulls to enter the coin, but the resistance has stopped the bulls from further buying the coin. The MACD is already at a support level of 0. CHance of bouncing and lifting off is higher from such levels. 

Conclusion

OMG price have failed to give out a breakout from a sideways channel and might return to take support from the 10 EMA or 20EMA. The OMG coin lacks the necessary buying force to break from the channel. 

Support: 10EMA($3.57), 20EMA($3.56), 50EMA($3.42) and lower BB($3.00)

Resistance: VWAP and Horizontal resistance: $4.12 and Upper BB($4.15)

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Kartik Dhankanihttp://thecoinrepublic.com
Kartik Dhankani is a BAF Student based out of India and a stock market trader and Financial Analyst. He seeks to diversify his reach to different investment alternatives and analyse them using his knowledge for fundamental and technical analysis

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