Origin Protocol gains 58% in two days; why is OGN pumping?

OGN jumped 58% between low to high levels in two days.
OGN jumped 58% between low to high levels in two days. Image by NASA Goddard Photo and Video on Creative Commons

Key Takeaways:

  • Origin Protocol’s native token OGN jumped 17% intraday to reach $1.515 before prices corrected.
  • A golden cross betweem 200-day MA and 26-day EMA lines formed on the daily charts.
  • The protocol also announced a liquidity mining campaign on Curve Finance that promises 1,161% APY.

NEW DELHI (CoinChapter.com) — Peer-to-peer market platform Origin Protocol saw its prices reach a five-month high on Nov 11, as the network’s native token OGN jumped to $1.515 before pulling back.

OGN gained 42%, going from Nov 11’s low of $1.065 to the day’s high of $1.515 before profits pared. The Origin Protocol token rose more than 36% in Oct and is currently on a bull run since Oct 28. Moreover, the recent jump comes on the back of OGN’s 26-day EMA and 200-day MA charting a golden cross.

In detail, a golden cross occurs when a short-term Moving Average trendline crosses above its long-term moving average line. It forecasts the potential for a major rally. However, it seems profit-taking pulled back prices as the OGN dropped 16% from its day’s high by the time of writing.

OGN Price Charts

OGN moved above its 200-day on Oct 30 after crossing above its 50-day MA a day before, making the token bullish across all time horizons. Currently, OGN has immediate resistance at $1.353, which has served as resistance for the token since May 11.

Resistance at $1.434 would likely cap any further upside movement. However, if OGN manages to break through the second resistance, the upside target would be $1.531 before pullbacks occur.

OGN prices jumped to $1.51 before prices pared.
OGN prices jumped to $1.51 before prices pared. Source: OGNUSD on Tradingview.com

On the other hand, if the rally falters, OGN has support at $1.069. In addition, further support for the Origin Protocol token is near the 26-day EMA at $0.985. Sustained selling pressure could result in prices falling to $0.903, near OGN’s 50-day MA line.

Also Read: Harmony (ONE) attracts $371M to its liquidity pools on booming DeFi, Gaming craze.

Meanwhile, trend-based momentum oscillator MACD continues to be bullish for OGN. The MACD histogram, which plots the difference between the MACD line (difference between 12-day and 26-day EMA) and the MACD signal line (9-day EMA of MACD), have been positive since Oct 2 except for two days.

Positive bars on the MACD histogram indicate that the MACD line is above its signal line, and the momentum is bullish for the asset. Moreover, OGN’s jump on Thursday infused the declining histogram with new life, strengthening the token’s bullish forecasts.

MACD for OGN has been bullish for more than a month.
MACD for OGN has been bullish for more than a month. Source: OGNUSD on Tradingview.com

The relative strength index for OGN is touching the overbought borderline with a value of 69.78. In detail, an RSI above 70 indicates overvalued/overbought condition. As such, it indicates an asset’s prices might soon pull back from their current levels. Thus, OGN’s RSI levels may worry traders into selling early for profits.

Why OGN Is Pumping?

Origin Protocol on Thursday announced its first liquidity mining campaign on Curve, the largest DEX by Total Value Locked. The campaign aims to increase the circulating supply of Origin Dollar (OUSD), the network’s stablecoin offering.

A recent governance proposal, passed by a 99.91% majority, approved the campaign. Liquidity providers in the OUSD/3crv pool would earn both CRV (Curve DAO token) and OGN tokens. Moreover, the providers would also gain trading fees.

Origin Protocol aims to veCRV (Locked CRV) holders to allocate the maximum CRV rewards possible to the OUSD pools. The network believes liquidity mining rewards would be key to increasing the supply, liquidity, and usage of OUSD.

Meanwhile, Origin’s NFT launchpad ‘is opening up to creators worldwide as Origin Story. The platform would offer creators several features and a user-friendly interface to help both new and veteran digital creators sell NFTs to their audience.

Also Read: UNHCR Partners with Syrian Cartoonist to help Afghanistan through NFT charity sales.

Origin Protocol is also offering an option to creators to sell for free on its Story platform. Instead of pocketing its commission, the network would refund the hosting fees in OGN tokens to the creators. However, there is a six-month lock-in period for the refund amount.

The move would theoretically reduce the active supply of OGN and might cause its prices to rise. Moreover, the Story platform would support sales in ETH and USD and plans to add support for other currencies soon.

At the time of writing, OGN was trading at $1.27, up 17.12% on the day.

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