Omni took the market by surprise with its steep surge, rising from $2.50 to an intraday high of $7.82 before easing off around $5.21. Such a jump over more than a 100% increase in only 24 hours obviously caught everyone's attention. 

The Omni price surge was not a coincidence. It was fueled by a combination of heavy trading activity, excitement from a top exchange listing, and technical momentum accumulated for days.

Upbit Listing Ignites Buying Frenzy

The largest spark for the Omni price surge was its new listing on South Korea's leading crypto exchange, Upbit. When OMNI/KRW began trading on July 29, Korean investors poured in. A similar pattern was there for the Mantra OM token after Upbit listing. 

Upbit contributed a whopping 32% of the overall daily trading volume alone, approximately $290 million of $904 million. That's an enormous tidal wave of interest.

A Short Squeeze Drives the Rally

Another part of the equation behind the rally was a phenomenon known as a "short squeeze." Many traders were shorting this coin, hoping it would decline.

But when the price spiked, they had to close out those bets in a hurry, covering it at higher prices so they would not incur further losses.

This pushed the price even higher. Overall, nearly $10.62 million worth of trades were liquidated i.e. they were closed automatically because they were losing with 72% of these coming from shorts.

Open interest (the sum of active trades' value) soared 370% to $75 million overnight.

It formed a feedback loop in which panic buying continued to drive the Omni price surge.

Chart Breakout Validates Bullish Momentum

The charts were already bullish before the Omni price surge.

  • It broke out of a 15-day downtrend and moved above an important price level at $4.77 on July 29.

  • That level, which once acted as resistance, is now working as support. Since then, the token has been staying above it. 

  • Technical signs like the MACD have been rising since July 27, and it is trading well above its 50-day and 200-day averages. 

Warning Signs: Is it Overheated?

As exciting as the Omni price surge is, traders should watch out for signs of a cooldown.

  • The RSI is resting close to 85, which is extremely overbought. When it reaches that point, a pullback tends to follow.

  • There's also a token unlock scheduled on August 2 approximately 15.98 million tokens (16% of supply) will be unlocked for core team members.

  • If some of those are sold, that could add pressure and lead to a short-term sell-off.

Currently the coin is trading at $5.11 with a weekly increase of 94.17%. The trading volume has surged by 100% to reach $820.89 million as per the CoinMarketCap. 

Source: CoinMarketCap

Omni price prediction

Looking at the price Prediction, 

If it is above the crucial support level at $4.77, it may retest the recent high at $7 and potentially drive towards $10.70, which is the subsequent significant Fibonacci target.

Yet, with the RSI overbought, a short-term pullback to $4.25-$4.50 is also expected, particularly after the August 2 token unlock. 

Generally, it is bullish in the short term, but anticipates high volatility.

Long-Term Outlook: What's Next?

In the meantime of Omni price surge, this token remains firmly supported. Binance began paying 11% APY staking on this cryptocurrency at the beginning of this month, and around 34% of the supply is currently locked up. That prevents selling for the time being.

And the project is also making improvements to the way it talks to other Ethereum rollups, something that would attract more developers in the long run.

If the interest from Korean trade remains strong and it remains above $4.25, it should continue to rise once the market settles down.

To Know More visit- CoinGabbar