On the 2nd of November, OmiseGo tested $5.5, which is the lowest price since August. While testing the low it rejected the 327.2% Fibonacci support level applied to the corrective wave after the downtrend trendline breakout.
After rejecting the support at $5.5 OMG/USD went up, breaking above the downtrend trendline as well as 200 Moving Average. But then a sharp corrective wave has followed.
On the correction, OmiseGo has rejected the uptrend trendline and the support formed on the 15th of September.
The price action suggests that a stronger growth could be expected in the short to medium term, although close above the $7.6 would add more probability to this scenario. The upside targets are based on Fibonacci applied to the corrective wave after breaking the downtrend trendline.
First target is at 127.2% – $9.17, while the second target is at 227.2% – $11.66. Break below the $5.5 support would invalidate this bullish outlook and could either extend the consolidation or send OmiseGo lower.