The last 24 hours have been terrible for OMG Network’s tokens. During the aforementioned period, the 77th cryptocurrency is down more than 30%, with a trading price of just $12.5 at the time of writing.
This decline is unexpected given that the token reached its recent high of $19.79 on 11/11.
However, market participants in certain regions may change OMG’s bearish narrative.
According to cryptoquant data, Korean exchange Upbit is currently the largest holder of OMG. Currently, it accounts for more than 20% of the total supply, with companies such as Binance, FTX, Coinbase, and Huobi holding relatively small shares.
The data above shows what is happening in Korea. As a result of the analysis, it was found that until recently, substitutes were traded at a premium.
evaluate the reason
However, it should be noted that at this stage, Upbit’s trading volume is 44% lower than Binance’s. Exchange holdings are high, but trading volumes do not represent the expected additional demand.
Now, given that the near future looks a bit bleak in the context of a price drop, you might be wondering why people want to buy tokens. Well, this is where the overall BOBA airdrop coefficient comes in.
A recent article highlighted that the network worked with Enya, the creator of the Boba network. As an L2 solution itself, Boba wants to reduce gas fees, transaction throughput, and expand smart contract capabilities. The Boba network, built by Enya, is a key contributor to the OMG Foundation, one of the main factors that triggered the recent 400% rebound in OMG.
Now, the Boba Network announced an airdrop on September 20th, when OMG was fluctuating around $9.50. Since then, OMG has witnessed two sharp rises and has continued to break new highs in nearly four years.
Well, OMG holders have been looking forward to the aforementioned airdrop for a while now, but even if they receive BOBA tokens later this month, the value of the underlying OMG tokens has plummeted.
But not everything is gloomy. There may be a silver lining here. Proponents of the “buy low” narrative could eventually create new demand for this token. Also, other people who want to benefit from airdrops can catch up with the trend. The combination of these two factors has the potential to reverse the situation for OMG.
obstacles to overcome
However, the status of the token indicator at press time is not attractive.
Consider this – OMG’s deposit transactions have recently witnessed a massive, unhealthy surge. Thus, this indicator shows the daily volume of all incoming and outgoing transactions associated with the OMG deposit address. A rise in the chart usually indicates an increase in short-term selling pressure, and looking at the chart below, it can be argued that the token will take some time to recover from the same state.
The divergence of DAA prices on the chart through November 11 was bullish. However, at the time of writing this article, we have seen a sharp decline of 91.09%, again marking the beginning of a bearish trend.
Therefore, we can only expect this token to rebound when demand finally increases, especially in Korea. Otherwise, it may be incorporated into the price chart for a while.
Source of information: Compiled with 0x information from AMBCRYPTO. The copyright belongs to the author, and unauthorized reproduction is prohibited.