OMG – how far are we from a next top
Assets covered: OMG Network
Metrics used: Active Addresses, Active Deposits, Exchange Inflow, Supply on exchanges, Network Realized Profit/Loss, MVRV, Holders Distribution
One of the biggest gainers last 24 hours is OMG. Only one of top-200 coins with double digit gains today. Why is it pumping?
Now starting to rise:
OMG onchain activity plotting higher highs and higher lows, good.
Are people selling OMG? Yes, they are:
A beautiful picture of building few tops one by one. And may be the fourth one is being built right now, active deposits are starting to pick up once again. We suggest that people are looking to sell.
Most of sell pressure seems to have come around 21st of September, after the first strong spike. Current inflow is quite low. It's fairly mild compared to quite concerning active deposits.
Supply on exchanges
We are rising in terms of supply on exchanges:
Supply bottomed out first. Then a lot of coins moving to exchanges as we pump, then some outflows and then once again we are high. It might be close to another short term price top.
Network Realized Profit/Loss
Plenty of profit taking on tops recently:
Three spikes and then we got another rise in NPL, sort of a profit taking. Again this might indicate that we are approaching a short term price top. Still some room to grow, but on a 'cautious territory' already.
Short term 30d MVRV is around +21%, which seems to be in a pretty established 'danger zone' for OMG:
Even if we break it we don't stay above for long, so we're definitely into more 'concerning' territory than anything else.
Some of whales are declining while the supply on exchanges is growing, so that's not necessarily a sign of great confidence by these large OMG holders. See for yourself:
We wouldn't be surprised to see if we break 15 USD, but we think we're getting pretty close. Resistance is broken:
What we are seeing in OMG is a classic picture of people getting comfortable about price action. A dangerous divergence between onchain activity and price is increasing. Probably we can still set a new ATH shortly, but there are really enough signs of approaching the top.
You might want to learn more about how these patterns work in a great insight by Santiment founder: Spotting ETH Price Tops Using Behavior and Volume Analyses.
Charts used: https://app.santiment.net/s/sp-Odra0
Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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