OMG on Brink of Bull Run, Network Metrics SuggestFebruary 5, 2021
- OMG’s network is substantially expanding, as more than 1,660 addresses are being created per day.
- The rising network growth coincides with a spike in large transactions, which is indicative of whales’ activity.
- Given the lack of significant resistance barriers ahead of this token, prices could be about to skyrocket.
Network activity on the OMG blockchain is rising at a meaningful rate, which may signal that its market value is about to explode.
Large Quantity of New Addresses
OMG seems primed to enter a new parabolic advance from a fundamental perspective. Its network has expanded exponentially over the past week, with several new addresses created.
IntoTheBlock’s Daily Active Addresses model shows that the number of new addresses created on the OMG blockchain bottomed-out on Jan. 27 at a low of 364 addresses per day, calculated on a 3-month trailing average. Since then, network growth has skyrocketed in terms of active addresses per day.
More than 1,660 new addresses are being created per day at press time based on this trailing average, which represents a 356% increase within the examined period.
The expansion of the network can be considered a very optimistic signal as it indicates a spike in user adoption over time. Since this on-chain metric is often regarded as one of the most accurate predictions of price, it may forecast that OMG’s price will follow suit.
OMG Transactions Also Rising
A similar uptrend can be seen in the number of OMG transactions on the network with a value greater than $100,000.
Large OMG transactions have been steadily rising over the past two weeks, from roughly 13 to nearly 210 transactions per day. The sudden uptick can be seen as the movement of tokens from holders who own millions of dollars in OMG, colloquially known as “whales.”
Since these high net-worth individuals have a disproportionate impact on prices because of their enormous holdings and ability to coordinate buying and selling activity, the recent upswing in large transactions shows confidence and trading activity.
As whales seemingly aim to regain control of OMG’s price action, no supply barrier may be able to prevent this cryptocurrency from achieving its upside potential.
No Significant Resistance Ahead
Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, only two considerable interest areas ahead of OMG may have the ability to keep rising prices at bay temporarily.
One of those barriers sits between $5.40 and $7.90, where roughly 19,000 addresses hold nearly 7 million tokens. The second and most crucial resistance wall lies between $10.40 and $12.70, where more than 80,000 addresses had previously purchased 6.30 million OMG.
Holders who have been underwater for an extended period may try to break even on their positions, absorbing some of the buying pressure behind OMG. But if prices can slice through these hurdles, OMG would likely retest previous all-time highs.
Conversely, IOMAP cohorts show that OMG Network sits on top of stable support. Over 84,000 addresses bought roughly 51 million tokens between $3.35 and $4.30. Such a massive demand zone suggests that bears will struggle to push prices down.
As long as OMG can hold above an average price of $3.75, the odds for a new bull rally look extremely promising.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
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