Jun 01

OmiseGo Rallies in a Third Wave

OmiseGo (OMGUSD) rallies over 14% on the first trading session of June. The cryptocurrency could complete its third extended in the following days.

OMGUSD, in its 4-hour chart and log scale, shows the bullish sequence of Minute degree that started on March 16th when the price found fresh buyers at 0.400 along with the bearish failure of wave ((c)) of the previous corrective cycle.

Once OmiseGo started its upward impulsive structural series of Minute degree labeled in black, the price began a bullish internal sequence of Minuette degree in blue. From the previous figure, we distinguish that the aggressive rally corresponds to a third extended wave.

At the same time, we observe that the price action topped at level 2.2673 on May 22nd, ending an extended wave iii of Subminuette degree identified in green. This impulsive movement belongs to the extended fifth wave of Minuette degree, which moves inside the third extended wave of Minute degree labeled in black.

Currently, the cryptocurrency OMGUSD raises advancing in its fifth wave in green, which could fail in its current upward sequence.

According to the Elliott Wave Theory, an impulsive sequence must have only one extended wave. This extended wave could be in the first, third, or the fifth wave. In this context, if the third wave is the extended movement, first and fifth waves will tend to be similar in terms of price, time, or both. On the other hand, considering the current scenario corresponding to a third extended wave in progress, when this movement occurs, the fifth wave will tend to fail in its attempt to strike a new high.

In consequence, for the following trading sessions, we expect the completion of the fifth wave of Minuette degree in blue, which at the same time will complete the fifth wave of Minute degree labeled in black. Along with this completion, the price action would develop a new corrective structural series corresponding to the fourth wave of Minute degree, likely until the psychological barrier at level 1.000, from where the cryptocurrency could find fresh buyers expecting to carry up the price.