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- 1 OSMO coin’s bulls have been in an uptrend since the end of October
- 2 Osmosis LPs can specify a minimum and maximum price for liquidity provision.
- 3 The current price is trading near a level of its immediate resistance.
Osmosis is a significant player in the Cosmos ecosystem, which is a network of blockchain networks interconnected via the Inter-Blockchain Communication (IBC) protocol. This uses the Cosmos software development kit. According to DefiLlama, the DEX has a daily trading volume of around $120 Million. This makes it one of the largest in the ecosystem.
What is Osmosis’ Concentrated Liquidity?
Osmosis Labs, the developer of the decentralized exchange (DEX) Osmosis (OSMO), has introduced a new feature called “concentrated liquidity.” With this feature, liquidity providers (LPs) can specify a minimum and maximum price range to buy or sell cryptocurrencies.
Osmosis LPs now can specify a minimum and maximum price for liquidity provision. They will not receive fees if the price falls below the minimum or exceeds the maximum. However, they will receive higher fees when the price is within their specified range than if they had not set any limits.
Words from Protocol Engineer
According to Alpin Yukseloglu, a protocol engineer at Osmosis Labs, this feature is an advancement over Uniswap’s original concentrated liquidity model. The original model only allowed LPs to set minimums and maximums at specific price intervals known as “ticks.” This new feature creates a better user experience since LPs can set price points exactly where they want them.
Yukseloglu also mentioned that Osmosis Labs plans to introduce an on-chain order book in the future. The team has already finalized the feature’s implementation-level requirements. However, they have not announced a timeline for its completion yet. The goal of both concentrated liquidity and the order book is to provide liquidity providers with more options, which is part of Osmosis’s broader objective.
Prediction of OSMO Coin Price
The OSMO coin is currently trading at the level of $0.6688 as the bulls are showing dominance overbears. The immediate resistance, however, is situated at $0.6874, where the bears might get a solid grip on the coin price. The 2nd support level is at $0.2267, while the 2nd resistance is at $0.8808.
However, the moving averages are on the verge of making a bullish crossover. The 50-day EMA is at $0.4336 while the 150-day EMA is at $0.4458. The price prediction from this stage could be bullish if the bulls can break this resistance. Otherwise, the OSMO coin price can return to its support level
Conclusion
Osmosis’ Protocol engineer mentioned that Osmosis Labs plans to introduce an on-chain order book in the future. The goal of concentrated liquidity and the order book is to provide liquidity providers with more options. The current price is currently at the level of its immediate resistance and the bulls are trying to overcome it.
Technical Levels
- Support Levels: $0.4436 and $0.2267
- Resistance Levels: $0.6874 and $0.8808
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
