The OM/USDT pair has been painting an impressive bullish structure on the higher time frames. Looking at the long-term monthly chart, $OM broke out from a prolonged accumulation range in late 2022, kickstarting a powerful uptrend. The breakout was accompanied by a significant spike in trading volumes, confirming strong buyer interest.
After the initial impulsive wave, OM witnessed a healthy retracement, finding support near the $0.35 area in early 2023. This pullback allowed the rally to reset overbought conditions and establish new higher lows. From the swing low, OM has formed an upward sloping channel, indicating a robust underlying bullish momentum.
Zooming into the daily timeframe, the most recent price action shows OM retesting the upper boundary of this ascending channel near $1.05 in March 2023. However, the market faced stiff resistance at those highs, leading to a short-term corrective phase.
The current price around $0.6625 coincides with a key Fibonacci retracement level of the previous upswing, suggesting demand could emerge in this vicinity. Supporting this view is the formation of a bullish hammer candlestick pattern on the daily chart, often considered a potential reversal signal.
Key exponential moving averages like the 20-EMA and 50-EMA have also flattened out, indicating waning bearish momentum. Although trading volumes have tapered off during the recent pullback, the overall OBV remains in an uptrend, suggesting ongoing accumulation by smart money.
To confirm a trend resumption, traders would want to see a decisive break and daily close above immediate resistance at $0.72. Such a move could quickly expose the previous highs around $1.05. Conversely, a close below $0.60 may trigger another wave of profit-taking by speculative traders.
Overall, OM seems well-positioned for a potential continuation of its bullish cycle, provided it can muster buying pressure to breach the current supply zone. Traders should keep a close eye on volume profiles and price action around key technical levels for further trading cues.
#ETHETFsApproved #altcycle #PEPE #MemeWatch2024
