Key Takeaways:
- Osmosis experienced an acute buying pressure during the previous trading day that uplifted the price by over 30% but the bearish interference restricted the gains to over 12%
- The bulls continue to be well-positioned; hence the revival of the bullish rally may be imminent that could lift the price levels above $1.5 in the near future
- The development activity is rising and hence it may induce bullish momentum that may uplift the price high very soon
Additional Read: Pancakeswap Price Prediction
Osmosis, the decentralized exchange on the Cosmos chain, recently gained significant limelight as the prices surged along with the bullish market sentiment. The token, trapped under the extreme bearish influence until the end of 2022, appears to have ignited a firm recovery phase. The OSMO price is trading above the resistance that could rise the levels beyond $1.5 in the coming days.
But what led to the gigantic price rise? Did other factors apart from the bullish market sentiments trigger the rally?
Well, the DEX had earlier conducted its v14.0.0 upgrade called the Neon as part of its broader plan to expand product integrations, enabling more efficient cross-chain trading from the market participants. The platform has been actively working to offer a strong and secure base for investors to trade. Hence has also launched ‘stabeswap’, a few days before which is a protocol to trade stablecoins.
With a spike in development activity, the platform’s short-term performance shook the entire crypto space.
Osmosis Token Technical Overview
Source: Tradingview
- The OSMO price incepted the trade just before the market accomplished its bull run in 2021 and interestingly raised high to hit an ATH during the end of Q1 2022
- Since then the prices maintained a steep bearish trend which was challenged by the bulls since the beginning of 2023 and rise the price by more than 60%
- Presently, the price appears to have accomplished a parabolic recovery curve but is unable to rise beyond the crucial resistance levels between $1.04 to $1.06
- Moreover, the RSI is also consolidating within a very narrow range as it appears that the bulls are currently exhausted after giant price action and are accumulating gains.
- Therefore, after witnessing a minor pullback, the prices are believed to resume with a notable uptrend and reach $1.1 initially and eventually mark yearly highs at $1.2 soon
Read More: Hummingbot For High- Frequency Crypto Asset Trading
Osmosis Token On-Chain Analysis
Osmosis Development Activity
Source: Santiment
The development activity of the project signifies the level of dedication and commitment, the developers possess in strengthening the platform. The rise in the levels usually indicates that the developers are working tirelessly to enhance the platform by offering multiple and upgraded features. The activity is recorded on Github which is public and hence is accessible to all.
The development activity of the platform has been rising significantly and hovering around the gained levels. This indicates the rising development of the platform which may result in the release of new features in the future. It is a bullish indicator as the market participants could be confident about the future prospects of the platform and hold the token for a longer time frame.
Osmosis Weighted Sentiment
Source: Santiment
Market sentiments play a vital role in determining the value of the token. Weighted sentiments consider all the mentions, regardless of whether it is positive or negative, and compare with the frequency of them occurring over time. If the weighted sentiments hover within the positive ranges, then it is considered as the market participants are positive and hence the price may be impacted positively.
Woefully, the market sentiments have been largely negative but hoover very close to the average levels. Hence it indicates the possibility of rising above these levels in the near future. However, rising above the average levels does raise the probability of rejection, but until the bulls are well-positioned, the lower support may not be tested.
Concluding Thought!
Osmosis has gained immense user attention and adoption in a very small time. The development activity does indicate the relentlessness of the developer’s action in strengthening the platform. Besides, the weighted sentiments display the uncertainty prevailing within the crypto space with reference to the token. Therefore, the bulls who appear to be slightly exhausted are believed to revamp with a bullish trend and rise accordingly.
