The OmiseGo prices rise and reach massive gains over the past week but the asset is slowly reaching the overbought territory as we are reading in the following cryptocurrency news.
The talk about OmiseGo across social media channels exploded after the major 150% price increase that started on May 11. With the increased hype around it, there is a strong chance that OMG will continue to surge but different indicators are warning of a major correction. The spike in selling pressure behind the ERC-20 token could see a price drop in the $1.3 region.
OmiseGo prices rise as OMG outperformed the rest of the market and doubled in price over the past week. However, different metrics indicate OMG is slowly getting close to overbought territory. $25 billion was deleted out of the crypto market over the past two days and the speculation of the 50 BTC transaction owned by Satoshi Nakamoto fueled a bearish impulse. Despite the ongoing market-wide correction, OmiseGo managed to weather the storm, and the price increased by 35% since the sell-off started.
Since Coinbase Pro revealed that they will list OMG on the retail platform, the ERC20 token did nothing but increase as well. Alongside the price, the social engagement metrics increased by more than 2 times since the announcement was made, according to crypto insights provider LunarCRUSH. Over the past 24 hours alone, OmiseGO saw 3 million engagements and more than 1,500 posts shared across multiple social networks.
Dino Ibisbegovic, the head of content and SEO at Santiment, explained that an extreme spike in crypto mentions are followed by steep pullbacks. As the hype stars increasing, larger investors could start dumping the holdings and will spark a corrective period.
“On average, the coins that gained more than 15% in 2 weeks before appearing on the Emerging Trends list. The moment they show up on the list, the dump begins. In the second week since appearing on the Emerging Trends list, the coins we backtested have, on average, lost a massive 8% of their total price. And this is on a sample of 200 coins.’’
The spike in ‘’token age consumed’’ index affirms that the larger holders are dumping. From a technical perspective, the TD sequential indicator added a credence to the idea of a potential downward impulse. This index is presenting a strong sell signal in the form of a green nine candlestick on the OMG 1-day chart.