OMG price outlook: OMG Network dips 15% amid profit taking
OMG price has fallen to lows of $1.85 after rejecting around $2.50.
The 15% dip is likely due to profit taking, a scenario that threatens flipping momentum to the bears.
Technical indicators suggest bulls need to hold at current levels or risk retreating to primary support near $1.68.
OMG Network price rose to its highest price level since August 2022 late last week, hitting highs of $2.50 on major exchanges. The price surge for OMG happened as bulls capitalised on positive crypto sentiment amid turmoil in the banking sector, with prices rising significantly over the weekend.
The coin has also pumped despite recent delisting news from Coinbase.
But while OMG/USD remains more than 32% higher in the seven-day timeframe, it has dipped over 15% in the past 24 hours. At the time of writing, OMG was trading around $1.89, with its bullish momentum at risk should bears manage to short term strengthenig.
OMG price daily price outlook
Profit taking deals appear to be behind OMG price retreating sharply in the past few hours. As seen on the daily chart below, OMG’s failure to breach resistance at $2.50 has seen it retrace to lows of $1.85 (data from TradingView).
The daily RSI is dipping towards the middle line to suggest weakness from bulls. In this case, bulls have to hold support at $1.80 to prevent further losses. If the bearish scenario persists, its likely OMG will revisit demand zones at the 200 EMA (near $1.68).
The 50-day EMA could offer another anchor around $1.56.
OMG Network daily price chart. Source: TradingView
OMG price 4-hour outlook
On the 4-hour chart, OMG is facing an old resistance level from February around $2.00, while bulls must hold above the highlighted orange zone to prevent further bloodbath. As can be seen below, the 4-hour RSI has flatlined near the middle line to suggest bulls are trying to take control fresh buy OMG deals.
OMG price 4-hour chart. Source: TradingView
Preventing a flip into oversold territory is key, with this likely to be helped if the MACD line does not slide further. The histogram is also slightly negative to suggest bears are still strong.
As noted earlier, a downside swing from current prices could see OMG bulls try to defend the primary support area around $1.68. On the upside, positive sentiment is likely to strengthen with prices above $2.34.
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