OMG Network has seen a significant correction the last 24 hours, following the large market sell-offs. Bitcoins price dropped ~ 6% yesterday which had many altcoins falling even harder. When looking at the top 50 cryptocurrencies by market capitalization, OMG Token has been one of the few to experience a strong correction. What price levels will traders be watching?
Crypto markets went into correction mode yesterday, as Bitcoins price sunk ~ 6%. After failing to accept $11,000 resistance, Bitcoin fell all the way down to $10,400 levels. Over the last 24 hours, the market has shown a small recovery, with Bitcoins price only seeing +0.33% upside. At the time of this report, BTC is currently trading at $10,478. Aside from the last 24 hours, here is how the market stacks up the last week:
- Bitcoin: -2.34%
- Ethereum: -5.19%
- XRP: -2.71%
- Chainlink: -19.83%
- Litecoin: -7.14%
- Cardano: -10.43%
- EOS: -2.33%
OMG Network Price Rallies
Despite Bitcoin only being down -2.34% the last week, many altcoins fell significantly yesterday when BTC witnessed a sharp sell-off. During todays session, many of the top altcoins failed to see any notable corrections. If we take a look at the top 50 cryptocurrencies by market cap, OMG Network was the market outlier, surging +16%. Based on CoinMarketCap, OMG Network is currently the 38th largest digital asset.
At the time of this report, OMG Token is trading at $3.025. Most recently, OMG built off $2.55 support and saw a relatively strong rally compared to the overall markets. With OMG having limited historical data, it is expected to experience high amounts of volatility in the near term.
Based on the data we have, it seems as if $2.55 is a strong support level. If OMG fails to hold that level, it could experience a very sharp sell-off. The reason for this is again the lack of price data. With OMG Token having its genesis date in 2017, it is a much newer cryptocurrencies than most. Its epic run in August has left the technicals very few support levels. In August of this year, OMG Token surged from $1.50 levels all the way to highs around $6.44. As Visionary Financial reported in late August, OMG experienced a +230% surge, fueled by the announcement that Tether was going to leverage the Ethereum based token.
Following the bull run, OMG Token quickly gave up gains, quickly retracing ~ 60%. Despite OMG being one of the outliers the last 24 hours, it is important to note that the token will continue to be volatile based on its premature status.
What is OMG Network ?
OMG Network operates a layer 2 scaling solution on Ethereum. With the Ethereum blockchain experiencing congestion and scalability issues, OMG Network is attempting to scale Ethereum, by offering scaling solutions for ETH and ERC20 tokens. OMG Token powers the OMG Network smart contracts. As mentioned above, Tether was the primary catalyst in the recent OMG rally. Due to high Ethereum fees, Tether announced that they were going live on the OMG Network to free up pressure on the Ethereum blockchain.