The previous 24-hours have been fairly dreadful for OMG Community’s token. The 77th ranked crypto shed greater than 30% of its worth within the aforementioned time window and was seen buying and selling at merely $12.5 on the time of writing.
The dip was fairly unanticipated, given the truth that the coin had simply attained a current excessive of $19.79 on 11 November.
Supply: CoinMarketCap
Nonetheless, market individuals from one specific geographical space have the potential to vary OMG’s downtrend narrative.
The ‘Korea’ issue
As per CryptoQuant’s data, South Korean trade Upbit is at the moment the largest OMG holder. It at the moment boasts of greater than 20% of the overall provide, whereas the likes of Binance, FTX, Coinbase and Huobi maintain pretty lesser shares.
The aforementioned knowledge brings to mild that one thing is occurring on the market in Korea. When analyzed, it was revealed that the alt had been buying and selling at a premium there till not too long ago.
Supply: CryptoQuant
Assessing why
At this stage, nevertheless, it ought to be famous that Upbit’s buying and selling quantity is 44% decrease than Binance. Excessive trade holdings, however not a lot quantity signifies one factor – anticipated extra demand.
Now, amidst the dwindling costs, one may marvel why would folks wish to purchase the token – given the truth that the near-term future appears to be like pretty bleak. Nicely, that is the place the entire BOBA airdrop issue comes into image.
In a current article it was highlighted that the community had partnered with Enya – the creator of the Boba community. Being an L2 answer itself, Boba intends to cut back the gasoline price, the transaction throughtput and prolong good contract capabilities. Enya constructed the Boba community as a core contributor to the OMG basis and that’s one of many essential x-factor that triggered OMG’s current 400% rally.
Now, the Boba community announced the airdrop on 20 September when OMG was oscillating round $9.5. Since then, OMG has witnessed two notable spikes and moreover went on to attain a close to 4-year excessive.
Nicely, OMG HODLers have been wanting ahead to the mentioned airdrop for some time, however despite the fact that they’ll be getting BOBA tokens later this month, the worth of their native OMG tokens has massively shed.
Not all is bleak, nevertheless. There is perhaps a silver lining right here. Individuals who advocate the purchase the ‘purchase the dip’ narrative may find yourself creating novel demand for this token. Plus, others who may wish to profit from the airdrop may also climb onto the bandwagon. In conjunction, each the elements have the potential to show tables round for OMG.
Hurdles to beat
The state of the token’s metrics, nevertheless, gave the impression to be fairly non-appealing at press time.
Take into account this – OMG’s deposit transactions witnessed a large, unhealthy spike of late. This metric, as such, reveals the quantity of all incoming and outgoing transactions involving OMG deposit addresses day by day. Upticks on the chart often point out an increase in brief time period promote strain and searching on the chart beneath, it may be asserted that it could take time for the token to recuperate again from the identical.
Supply: Santiment
Issues on the worth DAA divergence chart did appear to emit optimism till 11 November. Nonetheless, a steep 91.09% decline was famous on the time of writing, indicating the onset of bearishness, once more.
Supply: Santiment
Thus, provided that demand finally ends up growing, particularly in Korea, one can anticipate this token to rally. Else, it would simply consolidate for some extra time on its worth chart.
