- OMG price’s recent breakdown from an ascending parallel channel seems to have paused around a critical support level.
- Mounting selling pressure could lead to a further retracement given the lack of significant support underneath this altcoin.
Following a 21% correction, OMG Network price seems to have found stable support around $3.30. Regardless, a massive supply barrier ahead could reject the upward price action and lead to further losses.
OMG price faces an uphill battle
OMG Network price is currently trading at $3.40 after bouncing from the 50% Fibonacci retracement level. Although the recent bullish impulse looks promising, multiple bearish signals threaten a further advance.
For instance, the Parabolic SAR indicator shows a prevailing bearish trend that began on January 7.
OMG/USDT 1-hour chart
Moreover, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows a massive resistance barrier ahead that may keep rising prices at bay. Based on this on-chain metric, about 54,000 addresses had previously purchased 1.1 million OMG around the $3.80 area.
Such a massive supply barrier will be challenging for the bulls to breach since holders within this range will likely try to exit their underwatered positions. The increase in selling pressure could reject OMG price and lead to further losses.
OMG IOMAP
Indeed, a rejection from the $3.80 level seems likely because it coincides with the 78.6% Fibonacci retracement level. If this were to happen, OMG Network price might head towards the 50% Fibonacci retracement level once again at $3.10.
It is worth noting that a break of the overhead resistance at $3.80 can be considered extremely bullish for the ERC-20 token. Moving past this supply wall could see OMG price aim for the next considerable interest area around $5.
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