Description of OmisGO and OMGUSD analysis
Middle-term OmisGO forecast. Key levels to trade OMG USD and main prospects of OmisGO cryptocurrency.
Today, I’d like to offer a crypto forecast for a new cryptocurrency OmisGO, and analyze OMGUSD trading instrument.
I have never offered a forecast for this coin, though I have been following this project’s development for quite a long time.
To suggest the most relevant scenario for the cryptocurrency future, I need to apply fundamental analysis and identify the major drivers for the altcoin development.
OmisGO fundamental analysis
OmisGO is not just another start-up that has started with ICO. The project is backed by a real business, which has been operating since 2013 - the same-name company Omis, providing non-cash payments and transfers in the Asian region.
Developing the OmisGO cryptocurrency, the company announced itself, first of all, as the future leader in the decentralized financial services in the Asian region.
OmisGO is based on Ethereum blockchain and is designed to support the long-awaited Plasma update. Remember, it is Plasma that aims at solving the problem of Ethereum scalability and increase its transaction capacity manifold. Unfortunately, Plasma has been in a test version so far, and it hasn’t yet been launched in the Ethereum real network.
It is a delay in Plasma launch that sets back OmisGO development, as the present Ethereum network capacity can’t process the amount of transactions that could be compared to Visa or MasterCard.
In fact OmisGO has everything for an excellent start: strong team, real, operating business, numerous partners (McDonald's, True, King Power, ShinhanCard), network (mobile clients, wallets, the OMG token itself, entering the most popular exchanges).
Therefore, I’m convinced that after Plasma is launched, the project has great potential for its future development and can quickly regain its lost positions.
Another growth driver can become the launch of the decentralized exchange OMG DEX. The platform is designed to supplement the OmisGO network and provide the instant and safe converting between different cryptocurrencies and to create a universal payment system.
OMGUSD technical analysis
In the monthly chart of OMG USD price, the situation is not so good to buy. The uptrend is clearly broken. OMGUSD is close to the major support level at 3 USD. There are two lows. One is of November, 2017; another is of October, 2018.Together, the levels make up quite a strong zone, able to prevent the market from the a deeper drop.
In the OMGUSD weekly chart, there is a green buy signal, despite the general bearish state of the ticker that far from Keltner channel by the market point of control.
On the one hand, it indicates that the instrument is strongly oversold; on the other hand, the sideways trend at the current levels suggests that there is not buyers’ interest.
In the daily chart of OMG to dollar rate, it is clear that the last candlestick has sharply broken off the consolidation, affected by the general sentiment in the crypto market. Similar dumps have occurred already more than once. It was on September 11 and on September 17, and each time those sales were bought out and the price was up back to the point of control in the volume profile at 3.50 USD.
MACD in the daily chart has gone to the red zone; however, there hasn’t been a panic crash; it suggests there is no trend and the signal is false.
RSI stochastic paints pressed springs in the downtrend. Usually, similar patterns end with a puncture, but is still early to suggest it, as the indicator is just approaching the oversold level, and there is still space to go lower.
There is a clear bullish divergence in the OMGUSD 12-hour chart above. You see that the last dump is indicated by the RSI stochastic by a slight rounding without any strong movements.
In the 4-hour Renko chart, there is a clear consolidation around level 3 USD, being built of almost equal the triangles. Due to the strong support level, the next triangle can has the upper angle at about 3.50 USD.
Trading scenario for OMG USD pair
Summing up all the above, I can thank Bitcoin for driving down all altcoins and providing an opportunity to buy at the very low. From a fundamental point of view, OmisGO is quite a strong project that is steadily developing. Some day, Plasma will be launched, and so Omis will strengthen and fly up; it is only the matter of time. According to technical analysis, it is rather risky to by OMG USD now, as there are no bullish signals, except for a single bullish divergence; it, of course, not sufficient. However, from the point of view of management and the Profit/Lost ratio, it is quite relevant to buy at the current levels, as the level to put stop loss is clear and obvious. You just need to be smart, to put your stop loss at some distance from this level, in case there is another dump. Other than that, it is quite safe to buy there, as the price is highly likely to rebound up to 3.50 USD, where you can take a part of profit and move stop losses to the breakeven.
The fractal model that is now emerging is likely to develop up to the mirror projection. So, there will hardly be a sharp rise. There are going to be numerous rebounds and movements, with going back towards the trading channel’s borders. You must be prepared for this.
But if you are long-term investor, these swings should not bother you.
That is my OMGUSD trading scenario for the future. Go on following the OmisGO price and staying informed on the cryptocurrency market. I wish my crypto forecasts are useful for you!
I wish you good luck and good profits!
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Price chart of OMGUSD in real time mode
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