OmiseGo (OMG) kicked off the trading in September trading at $4.3. There was a brief surge in the first week of the month where OmiseGo brushed shoulders with $5.0. However, the crypto began deflating massively. The price dipped below the 50SMA on the 4-hour timeframe chart. Fortunately, $3 stood its ground stopping any more price swings to the south. A recovery has been ongoing in the past few weeks but not without significant hindrances. In fact, OMG/USD is down 16% in September alone.
OmiseGo technical picture
In the meantime, the digital asset is trading at $3.64. The prevailing trend is bullish with the stochastic almost crossing into the overbought region. Similarly, the MACD has pulled back into the positive territory. The price is above the 50 simple moving average. In addition, it has been range bound below $4.0 since the declines in the first week of September. For OmiseGo to witness any sustainable considerable growth, it must overcome the resistance at $4.0 and preferably established a higher support level. This will open the way for the much-awaited pullback above $5.0. On the other hand, the primary support rests at $3.0.
OmiseGo is up 7.23% in the last 24 hours. It has a market capitalization of $509 million. At the same time, $57 million in volume has been traded on the exchanges according to the data on CoinMarketCap. A bigger chunk of the trading volume went through BitMart exchange which controlled 27.11% in OMG/ETH pair. Bithumb comes second at 21.71% in OMG/KRW trading pair. The network has a circulating supply of 140,245,398 OMG.
OmiseGo (OMG) Plasma and what it means to the ecosystem
Recently, OmiseGo announced the Plasma framework. The platform will have the ability to execute smart contracts while supporting high levels of scalability “of up to limitless transactions per second (TPS).” The new framework is not only great news for the OmiseGo community and ecosystem but also relevant and essential for the entire cryptocurrency industry. It can also be applied in financial sectors across the world and with this, the network hopes to bring the real change in the lives of merchants, investors and crypto enthusiast using the blockchain technology.
“The smart contracts are incentivized to continue operation autonomously via network transaction fees, which is ultimately reliant upon the underlying blockchain (e.g. Ethereum) to enforce transactional state transitions.”
Scalability is the primary focus of the Plasma platform. The network has been designed as a provider of payment solution on Ethereum blockchain. The entrance of plasma into its ecosystem is the ray of hope that the industry has been waiting for especially for the networks that are Ethereum-based. Scalability issues are the main setback when it comes to global mass adoption of cryptocurrencies.
Plasma also brings back investor confidence in OmiseGo. There will be other products built on top of plasma, like the soon to be launched decentralized exchange. The exchange is expected to eliminate the need to have wallets and will allow users to trade any digital asset.
“OmiseGO is building a non-custodial decentralized exchange on top of Plasma. They‘re creating the back-end infrastructure that allows currency-agnostic asset exchange in order to trade any digital asset into any other digital asset.”