THELOGICALINDIAN - Genesis Block Ventures appear the accretion of OMG Network causing accumulation selloffs
Crypto investors may accept acted too anon on account of OMG Network‘s acquisition. OMG’s agrarian amount activity was able to allurement speculators and it now appears to be ashore in limbo.
OMG Skyrockets After Acquisition
OMG Network’s amount activity is a bright archetype of the aerial levels of belief in the market.
On Dec. 4, Genesis Block Ventures (GBV) appear the accretion of OMG Network. The advance administration close aims to enhance the use of blockchain technology throughout Asia, area OmiseGo has a able presence. GBV wrote in its press release:
Through this acquisition, GBV is committed to advantage its arrangement strength, to advance the accelerated advance of OMG Network, and added enhance the acceptance of OMG blockchain in Asia and beyond.
Following the announcement, crypto enthusiasts rushed to exchanges to buy the OMG token. The fasten in appeal was followed by agitation buying, which helped advance prices up by about 20% aural minutes.
Alongside prices, OMG-related mentions on amusing media skyrocketed by added than 400%, while its alternate affect account surged from a low of 42 to 73, according to another abstracts provider The TIE.
A Vicious “Pump and Dump”
The aerial levels of absorption generated by the OMG accretion were not a acceptable assurance for its concise amount action. Historical abstracts shows that back the army pays added absorption to any accustomed cryptocurrency because of an on-going bullish impulse, a abrupt abatement occurs anon after.
Such bazaar behavior was absolutely what happened with OMG Network, as the coin’s amount anon plummeted to its pre-announcement value. This accident accepted to be one of the best abandoned “pumps and dumps” apparent in the cryptocurrency bazaar over the accomplished few months, breeding over $1 actor in liquidations.
Now, OMG seems to be ashore amid two cogent hurdles. IntoTheBlock’s “In/Out of the Money About Price” (IOMAP) archetypal reveals that added than 2,000 addresses had ahead purchased over 6.5 actor OMG about $3.80. This massive accumulation barrier is confined as attrition and will acceptable impede prices from recovering.
On the cast side, the IOMAP cohorts appearance that 10,000 addresses bought about 6 actor OMG at an boilerplate amount of $3.70. This absorption breadth is currently acting as a abiding abutment bank that may blot any bottomward amount action.
Only a circadian candlestick abutting aloft or beneath the $3.70-$3.80 area will actuate area prices advanced headed next.
