OMG Network Price Analysis - OMG Surges 17.5% After Rebounding From .886 Fib Retracement - Is This A Reversal Or Just A ‘Dead Cat’ Bounce?

Key Highlights:

• OMG Network saw a healthy 17.5% price surge today as the coin rebounds to climb back above $3.00.
• The cryptocurrency found support at the .886 Fib Retracement over the past couple of days, allowing the rebound to occur.
• The cryptocurrency also rebounded from the 23800 SAT level yesterday to reach the current 29,300 SAT level.

⠀OMG Network price:	$3.12
⠀Key OMG resistance levels:	$3.51, $3.70, $4.00, $4.44, $4.50
⠀Key OMG support levels:	$3.00, $2.75, $2.54, $2.17, $2.00

*Price at the time of writing

OMG Network saw a healthy 17.5% price surge over the past 24 hours of trading, as the cryptocurrency bounces to push back above the $3.00 level. OMG had surged in mid-august to reach as high as $9.50 during the month on the announcement that the coin would be listed on the Coinbase exchange. 

Since then, the cryptocurrency has actually dropped by a strong 67% to reach the current level at around $3.11. The coin fell beneath the $5.00 level during this month and continued to drop until support was found at the .886 Fib Retracement level at $2.54. The bears reached this level a couple of days ago, and the buyers have managed to defend the level. This led to the rebound we saw today as the bulls break back above the $3.00 level.

This rebound allowed OMG to climb back above the 100-day EMA.

However, there is no driving force behind this push higher as the news is relatively light for OMG Network. In addition to this, there aren’t many fundamental factors that could be driving OMG Network higher. For example, the Daily Active Address count seems quite stable and marginally falling, suggesting that this rebound is not driven by an increase in on-chain activity.

However, it does seem to a purely technical rebound from a Fibonacci Retracement level (.886 Fib Retracement). The NVT Ration is also not showing anything to indicate why we might have bounced today. The NVT is relatively low but is climbing. A low NVT shows that the market is undervalued and should start to increase. On the other hand, a high NVT would indicate the market is overvalued, an increase in on-chain activity does not drive this rebound and the price should decrease.

Until some news comes out, we have to assume that this price surge is based on technical factors solely.

OMG Network is now ranked in the 38th position as it holds a $425 million market cap value.

OMG Network Price Analysis

What has been going on?

Taking a look at the daily chart above, we can see the epic price surge in August that saw OMG climbing from around $2.50 to explode higher and reach as high as $9.50 before the bulls stalled. It is important to note that this was a spike higher. The daily candles in August were never actually able to close above the $6.50 level.

From there, OMG started to fall. It managed to find support at the $5.00 level toward the end of August. However, the early-September BTC price drop caused OMG to break beneath the $5.00 level as it plummeted into the $3.50 area.  The bearish pressure continued last week as OMG fell beneath $3.50 to break beneath the 100-day EMA at $2.75 and reach as low as $2.54. A .886 Fib Retracement provides the support here, and the bulls defended this level over the past couple of days, which allowed OMG to bounce higher.

The coin is now back above the 100-day EMA, and it is trading at $3.10.

OMG Network price short term prediction: Neutral

OMG is neutral right now. However, a break beneath $2.17 will turn OMG bearish. On the other side, OMG would have to break above the $5.00 level before we can even consider any form of a bullish market.

If the sellers do push lower, the first level of support lies at the 100-day EMA and then at $2.54 (.886 Fib Retracement). Beneath $2.50, support lies at $2.17 (downside 1.272 Fib Extension & 200-day EMA), $2.00, and $1.60 (downside 1.414 Fib Extension). 

Where is the resistance toward the upside?

On the other side, the first level of higher resistance lies at $3.50. Above this, resistance lies at $3.70 (bearish .236 Fib Retracement), $4.00, $4.450 (bearish .382 Fib Retracement), and $5.00 (bearish .5 Fib Retracement). 

What has been going on?

The situation is quite similar to OMG against BTC. The coin had surged as high as 80,000 SAT during the mid-August surge caused by the addition to Coinbase. Since then, the coin has rolled over to drop int the 33,700 SAT support at the start of September. 

Last week, this support broke as OMG headed further lower into the 23,800 SAT level, where it rebounded yesterday to trade at 29,300 SAT today.

OMG Network price short term prediction: Neutral

Likewise, OMG is neutral, but a break beneath 20,000 SAT would undoubtedly turn the market bearish. In fact, if it was to drop further beneath 23,800 SAT then the market could already be bearish. To turn bullish, OMG would need to climb above the 40,000 SAT level.

If the sellers do push lower, the first level of support lies at 27,400 SAT. Beneath this, support lies at 25,125 SAT (.886 Fib Retracement), 23,800 SAT, and 20,000 SAT (200-day EMA). Added support is found at 19,000 SAT (downside 1.272 Fib Extension), and 16,740 SAT (downside 1.414 Fib Extension).

Where is the resistance toward the upside?

On the other side, the first level of resistance lies at 31,500 SAT. Above this resistance is found at 33,770 SAT (bearish .236 Fib Retracement), 40,000 SAT (bearish .382 Fib Retracement), and 44,400 SAT (bearish .5 Fib Retracement).

Keep up to date with the latest OMG price predictions here.

Previous OMG analysis

At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's our most recent articles about the price of OMG Network:

• OMG Sees 1,170% Price Growth Since March Lows As USDT Integration Takes Coin Into Top 30 (Bullish)
• OMG Explodes By 200% Over 30-days After Coinbase Effect Kicks In (Bullish)
• OMG Surges After Coinbase Pro Announces New Exchange Addition (Bullish)