OMG Network, formerly known as OmiseGo, is a non-custodial, layer-2 scaling solution built for the Ethereum blockchain. As an Ethereum scaling solution, OMG Network is designed to allow users to transfer ETH and ERC20 tokens significantly faster and cheaper than when transacting directly on the Ethereum network.
The network is based on a novel scaling solution called MoreViable Plasma, which uses a sidechain architecture to group several transactions off-chain into a batch, which can then be verified as a single transaction on the Ethereum root chain. According to OMG Network, this technology has the potential to scale Ethereum to thousands of transactions per second (TPS) — instead of the 10 to 14 tps Ethereum 1.0 is currently capable of.
The network is powered by the OMG utility token, which can be used as one of the payment methods for fees on the OMG Network, and will eventually be stakable — helping to secure the network in return for rewards. Let us look at the technical analysis for the same.
Past Performance
On July 3, 2021, OMG started trading at $4.034. As of June 4, 2021, the closing price of OMG was $4.584. Thus, in the past week, the OMG price has increased by 4.86%. In the last 24 hours, OMG has traded between $4.503 – $4.506.
https://www.tradingview.com/x/srtypqjK/
Day Ahead And Tomorrow
Currently, OMG is trading at $4.512. The price has slightly reduced from the opening of $4.530. Thus, the market is a little down, but we need to see the other indicators along to draw a conclusion. We can see the price touch its peak at 4.869 a few hours ago, but is showing a downward trend.
The MACD and signal lines are in the negative zone. Plus, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish, it does not seem the lines will pass the zero line anytime soon into the positive.
The RSI indicator is at 34%. It has fallen from the 61% mark. Thus, it indicates that the selling pressure is high in the market. Hence, we can expect the price to fall for some time.
The price has tested and fallen below the Fibonacci pivot point of $4.680. As some of the oscillators have shown bearish signals, we can expect the price to fall and test the first Fibonacci pivot support level of $4.465 soon.
OMG Technical Analysis
The price has been tested and is currently trading below the 38.2% FIB retracement level of $4.630. If the price falls below the 23.6% FIB extension level of $4.526 in some time, this implies that the price downtrend is strong. In that case, the price downswing is likely to continue for a few hours.
However, if the price tests and rises above the 38.2% FIB retracement level of $4.530. It can test the 50% FIB retracement level of $4.592.
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