On Dec. 4, Genesis Block Ventures (GBV) revealed the acquisition of OMG Network. A Vicious Pump and Dump The high levels of attention created by the OMG acquisition were not a terrific indication for its short-term rate action. Now, OMG appears to be stuck in between 2 considerable hurdles. This huge supply barrier is working as resistance and will likely obstruct rates from recuperating.
Crypto investors might have acted prematurely on news of OMG Network‘s acquisition. OMGs wild expense action was able to trap speculators and it now appears to be stuck in limbo.
OMG Skyrockets After Acquisition
OMG Networks rate action is a clear example of the high levels of speculation in the market.
On Dec. 4, Genesis Block Ventures (GBV) exposed the acquisition of OMG Network. The financial investment management company means to improve the usage of blockchain technology throughout Asia, where OmiseGo has a strong existence. GBV made up in its news release:
Through this acquisition, GBV is committed to utilizing its network strength, to promote the sped up development of OMG Network, and even more increase the adoption of OMG blockchain in Asia and beyond.
Following the statement, crypto lovers rushed to exchanges to buy the OMG token. The spike in need was followed by panic buying, which helped push rates up by almost 20% within minutes.
A Vicious & Pump and Dump The high levels of attention produced by the OMG acquisition were not an excellent sign for its short-term rate action. Historical data shows that when the crowd pays increased attention to any given cryptocurrency because of an on-going bullish impulse, a high decline takes place shortly after.
Such market habits were precisely what occurred with OMG Network, as the coin’s rate rapidly dropped to its pre-announcement worth. This occasion showed to be among the most vicious “pumps and disposes of & seen in the cryptocurrency market over a previous couple of months, developing over $1 million in liquidations.
Now, OMG appears to be stuck in between 2 significant difficulties. IntoTheBlocks’ “ In/Out of the Money Around Price” (IOMAP) design exposes that more than 2,000 addresses had previously bought over 6.5 million OMG around $3.80. This huge supply barrier is working as resistance and will likely hamper rates from recovering.
In/Out of the cash Around Price by IntoTheBlock On the other hand, the IOMAP partners reveal that 10,000 addresses purchased almost 6 million OMG at a typical expense of $3.70. This interest area is presently functioning as a stable help wall that might take in any down rate action.