OMG has seen another 2.87% price hike over the past 24 hours of trading. The cryptocurrency is currently trading hands at a price around $4.45 after seeing a 7 day price increase of 20.65%.
OmiseGo was created by its parent company Omise in Thailand. Omise is payments solution platform for Southeast Asia created in 2013. OmiseGo is another payments solution platform designed to be used by Omise.
The cryptocurrency was created by Jun Hasegawa who has worked at Google for 16 years prior to creating OMG. The idea of OMG is to created a payments solution to everyone in SE Asia regardless of their financial status. The problem is that in SE Asia there are 73% of the population that are unbanked. Many choose to use mobile ‘e-wallets’ but there is no merchant support, high fees (as much as 10% in some cases) and they are not cross compatible.
The OMG platform is designed to be super user-friendly with the average user in mind for its use. Along with the mobile wallet, the OMG team will be releasing a decentralised exchange under OmiseGo that will allow users to exchange cryptocurrencies with one another without the need to trust a middle man.
In its short lifespan, the team have managed to secure a number of high profile partnerships including names such as TrueMoney, 7Eleven and McDonalds Thailand. It is anticipated that when the OMG platform is ready to scale, the team will be moving all of Omise payments onto the OMG platform including all payments processes through their partners.
Vitalik Buterin, the founder and CEO of Ethereum, is a known advocate for OMG proven by his service as an advisor for the project. Along with Vitalik, Joseph Poon has also helped to write the white paper for OMG and it has been stated that OMG will be the first cryptocurrency to implement the Plasma Network.
OMG is currently ranked in 21st position in terms of overall market cap across the entire industry. It has a total market cap value of $623 million after suffering a 33% price drop over the past 30 trading days.
Let us continue to analyse price action for OMG over the long term.
OMG/USD – LONG TERM – DAILY CHART
Analysing the market from the long term perspective above, we can see that during 2017 the market had experienced an incredible bullish run when price action started from a low of $0.36 on the 16th of July 2017 and extended to an all time high of $29.37 on the 8th of January 2018. This was a price increase that totalled 6900% from low to high.
We can see that after placing this all time high, price action began to decline rapidly. It had originally found support at the .5 Fibonacci Retracement level priced at $14.87. This Fibonacci Retracement is measured from the entire bullish run outlined in the paragraph above.
Price action continued to decline throughout the rest of the year finding support at the .786 Fibonacci Retracement level priced at $6.58 during June and July 2018. However, the entire cryptocurrency market experienced a bloodbath throughout August and OMG was not immune to this as the market collapsed and fell below the .786 Fibonacci Retracement to find further support lower at the .886 Fibonacci Retracement level priced at $3.68. This price level proved to be a strong area of support as the market rebounded strongly from this level.
Let us continue to analyse price action a little closer over the short term to highlight any potential support and resistance zones.
OMG/USD – SHORT TERM – DAILY CHART
Analysing the market from the short term perspective above, we can see that the recent decline had found support at a downside 1.618 FIbonacci Extension level (drawn in blue) priced at $3.17. As the market reached this level it rebounded aggressively back above the long term .886 Fibonacci Retracement level.
Over the past 2 weeks, price action has been trapped in a range bound between $3.17 – $4.82. The market is now trading close to the upper boundary of the range.
If the bulls can push price action above $4.82 we expect immediate resistance to be located at the previous short term downside 1.272 FIbonacci Extension level (drawn in blue) priced at $5.15. Further resistance above this level is then expected at the long term .786 Fibonacci Retracement level priced at $6.58. The next level of expected resistance above this level is at the $7 handle, which is significantly bolstered by 100 day moving average which is currently located within the same area.
Alternatively, if the bears re-enter the market we expect significant resistance to be immediately located at the long term .886 Fibonacci Retracement level priced at $3.68. Further support expected below this level is then expected at the downside 1.618 Fibonacci Extension level (drawn in blue) priced at $3.17.
The technical indicators within the market have begun to strongly swing towards favouring the bulls within the market. The RSI is currently trading above the 50 handle indicating that the bulls are in control of the momentum within the market. If the RSI can continue to remain above 50 we can expect price action to continue to make gains.
Similarly, the moving averages are beginning to show promise toward the bulls as the shorter moving average positions itself to cross above the medium term moving average. The 7 day EMA ( blue line) has pointed toward the 21 day EMA (purple moving average). If the 7 day EMA can cross up above the 21 day EMA this will constitute a bullish crossover and signals that the bullish pressure within the market is increasing.