OMG waves and whales

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Santrends
Apr 5, 2021

Assets covered: OMG Network

Metrics used: Trading volume, Daily Active Addresses, Daily Active Deposits, Network Profit Loss, MVRV, Transaction Volume, Supply distribution by balance of addresses



OMG Network, formerly known as OmiseGo, is a non-custodial, layer-2 scaling solution built for the Ethereum blockchain. As an Ethereum scaling solution, OMG Network is designed to allow users to transfer ETH and ERC20 tokens significantly faster and cheaper than when transacting directly on the Ethereum network.


Seems quite on spot lately, right?


OMG seems to be one of the the best ERC20 coin of Monday. It has a few interesting onchain indicators we'd like to show.



Starting with price itself:



It looks like we are finishing 5th wave here (from 1st of March). But for the 5th wave we should see explosion in Trading Volume and DAA. And we don't see it:

Also on top of the 5th wave there should be a very good news. Are there? Seems that not yet. So keep an eye. Once there are some great news, it's probably the end of the rally.



Exchange related activity. Daily Active Deposits:

Not really a whole lot here. Amount of exchange deposit transactions seems quite average. May be because of the weekend. We would expect to see these deposits to start ramping up to form a top. Because this was exactly the signs of previous tops. Currently it's not visible. Not top yet?



Network Profit Loss. Are people taking profits?

They are. But not super intensive according to a few average spikes on the right. Seems that there's less overreaction from the crowd so far. Compared to previous tops at least. Still it's only Monday, a lot of things can change.



MVRV:


30-day MVRV ratio, or the average P or L of all addresses that acquired OMG in the previous 30 days. It currently sits at 22.8%, indicating that short-term holders are - on average - just +22.8% up on their initial investment:


And it seems that MVRV is slowly approaching a local resistance level at around +30%. An overvalued or "danger zone" is definitely close. Why 30%? Because this was MVRV value around previous tops.



Transaction volume

Is relatively low. At least compared to other tops, it's seen clearly on historical chart.



Whales behaviour

Owners from 100,000 OMG (from around 800K in USD) are currently continuing to grow their holdings. They are not exiting. Which could be an optimistic sign.



Summing up


Dangerous signals:

Positive signals:

  • Deposits are very low, so there doesn't seem to be a lot of additional sell side pressure;
  • Whales don't seem to be dumping.

Things to watch:

  • Big news. OMG releasing some big news could be a nice top indicator. Especially if OMG appears in top 3 Santrends.


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.:



OMG
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Santrends
Apr 5, 2021

Thanks for reading!

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