Trade Recommendation: OmiseGo
We’ve been watching OmiseGo (OMG/BTC) for some time now. It looks like the market is finally ready to erupt.
OmiseGo has been stuck in range accumulation for about four months now. During this period, it has been range bound between 0.0003 and 0.00045. Recently, the market started to show signs of life. We’re seeing serious volume upticks over the last few weeks. This is usually a sign that a market is about to leave range accumulation. If our read is correct, it is worth it to closely watch OMG/BTC.
Technical analysis shows that OMG/BTC is painting a inverse head and shoulders pattern on the daily chart. In addition to the volume upticks, the market is likely to breakout soon due to the following reasons.
First, bulls have tapped resistance of 0.00045 several times throughout this accumulation period. In particular, the tap on March 24 caught our attention. While OmiseGo pulled back after touching the resistance, the response from the bears was weak. This enabled bulls to establish a higher low of 0.0004, which puts them in a great position to finally take out the range resistance.
Also, the 200-day moving average (MA) is now crawling below the price and acting as support. In addition to that, the 50-day MA is about to cross above the 100-day MA. The incoming golden cross is a good indication that the market is turning bullish.
The strategy is to buy at the breakout and retest of 0.00045. As long as OMG/BTC trades above this level after the breakout, bulls will likely gather the momentum to climb to our targets of 0.0008.
The process may take less than a month.
Daily Chart of OmiseGo/Bitcoin on Binance
As of this writing, the OmiseGo/Bitcoin pair is trading at 0.000428 on Binance.
Summary of Strategy
Buy: Breakout and retest of 0.00045.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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