The downward move came quite unexpectedly as the coin broke on Nov.
However, market participants from a specific geographic region have the potential to change OMG’s bearish narrative.
The “Korea” factor
South Korean exchange Upbit is currently the largest OMG holder, according to CryptoQuant data. It currently accounts for more than 20% of the total supply, while companies like Binance, FTX, Coinbase, and Huobi hold some.
The above data suggests something is happening in South Korea. Upon further analysis, OMG is arbitrage here.
Reserve at exchanges | The source: KryptoQuant
At this point, it should be noted that Upbit’s trading volume is 44% lower than Binance’s. The high stocks of the exchange but the low volume suggest that additional demand is expected.
Why would someone buy tokens in the face of a falling price when the reality is that the near future looks pretty bleak? Probably because of the Boba airdrop.
Recently the network teamed up with Enya – the creator of the Boba Network. As a Layer 2 solution, Boba intends to reduce gas charges and transaction traffic and expand smart contract functionality. Enya built the Boba Network as a key contributor to the OMG Foundation, and it was one of the key factors that sparked the OMG’s recent 400% rally.
Additionally, Boba Network announced an airdrop on September 20 when OMG was hovering around $ 9.5. Since then, OMG has seen two notable spikes, reaching a nearly 4-year high.
HODLer OMG has been expecting the aforementioned airdrop for a while, but although they will receive their BOBA tokens later this month, OMG’s value has gone down.
However, not everything is gloomy. Proponents of “buying the dip” could create a new demand for the token. In addition, many others who want to benefit from the Airdrop can also board the train. Both factors have the potential to turn the tide for OMG.
Break the barriers
However, at the time of writing this article, the status of the indicators does not seem attractive.
OMG deposit transactions so far have been large and unhealthy. This indicator shows the number of all incoming and outgoing transactions related to the OMG deposit address on a daily basis. Rising lines in the chart usually indicate increased selling pressure in the short term. Looking at the graph below, it can be confirmed that it will take some time for the token to recover.
The source: mood
The price DAA divergence chart seems optimistic until 11/11. to suggest. However, at the time of writing it is down 91.09%, again signaling the start of a downtrend.
The source: mood
Therefore, an increase in this token can only be expected if demand increases, especially in South Korea. If not, it will consolidate on the price chart for some time.
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