Trade Recommendation: OmiseGo (OMG)
OmiseGo (OMG/USD) is a market that’s still trapped in range accumulation. On June 26, 2019, the cryptocurrency had a chance to take out resistance of $3.00 and launch its own bull run. Unfortunately, bears had the upper hand. They swiftly rejected the attempt to go above $3.00. With no bullish fight back, the market tumbled as participants scurried to take profits or cut their losses.
As a result, OmiseGo dropped to as low as $1.3002 on July 16th. That’s a nosedive of close to 60% from the 2019 high of $3.2357. Nevertheless, the market is showing signs of bearish exhaustion. We’ll take this chance to trade the bounce.
Technical analysis shows that OMG/USD is respecting support of $1.50. We have this view because even though the market dropped below this level on July 16th, bulls quickly responded and lifted the cryptocurrency above the support on July 20th. Thus, the move below $1.50 can be interpreted as a bear trap.
Also, volume has been on a significant decline ever since the market posted a 2019 high on June 26th. This indicates that sellers are losing interest in dumping the coin at current levels. This selling relief might offer OmiseGo the opening for a bounce.
The strategy is to buy as close to $1.50 as possible. As long as OMG/USD trades above this level, it will likely rally to our initial target of $2.251. Take that out and $3.00 is next.
The process may take less than a month.
Daily Chart of OmiseGo/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $1.50 as possible.
Targets: $2.251 and $3.00.
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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