Cryptocurrency token OMG has surged by more than 70% over the past 24 hours following an announcement from stablecoin Tether that it will use OMG’s blockchain.
Tether’s decision to utilise another blockchain reiterates what Bitfinex CTO Paolo Ardoino told Coin Rivet earlier this year, when he said: “The common denominator across all the blockchains can be one stablecoin that unifies all these communities while providing the same experience and same issuance and redemption across all blockchains.”
In this case, the news will come as a major boost to OMG investors as it demonstrates the security, speed and efficiency of its blockchain.
What’s more staggering than the rise in price has been the daily trade volume, with $4.2 billion being traded across all trading pairs in the past 24-hours.
The previous high in terms of volume came on May 23 when just $732 million was traded in the same period. As a point of comparison, when OMG reached its all-time high of $25 in 2018 it struggled to break above $400 million per day.
This demonstrates a significant influx of demand from both retail and institutional investors similar to what was seen on Chainlink trading pairs over the past fortnight.
From a technical perspective, while it has been untested for more than two years, the $6.73 level of resistance is currently the key hurdle that OMG needs to trade above if it wants to confirm a breakout an experience bullish continuation to the upside.
What’s likely in the short term is a slump back to the $5.37 level of support to re-establish it before using it as a base for another rally.
As the market moves into the typically low-volume weekend, it will be interesting to see how OMG performs, but considering a relative lack of liquidity on the order books it could well made another attempt at the psychological $10 level.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.