The Origin Protocol (OGN) has consolidated quite impressively over the past 7 days. The coin had seen a major sell-off in previous weeks. However, although the consolidation is a good thing for OGN bulls, the coin still remains very vulnerable to steep losses. Here are key points to note:
OGN has gained nearly 50% from its lowest price in May.
The recovery rally has started to slow, with OGN losing 11% in the last 24 hours.
The coin will likely retreat further as short-term traders exit positions.
Data Source: TradingView
Origin Protocol – How serious is the downside?
May was no doubt the worst month for crypto in 2022. As a result, OGN hit its lowest price in 2022 this month. While there has been a decisive recovery over the last 14 days, the token is now losing momentum. In fact, after falling 11% in the last 24 hours, OGN is about to lose the crucial $0.2 support.
If this happens, the coin will be exposed to at least a 30% downside. This fall will likely settle on its 25-day EMA of around $0.15. However, IGN bulls still have a chance to avoid this. The most important thing will be to consolidate above $0.2. If OGN is able to close the day above this price, then we may see it test its next overhead resistance at $0.23.
Despite this, smashing past $0.23 will be very hard in the near term. As such, it’s safe to assume that the upside potential for OGN remains capped at the moment.
Should you buy OGN or Wait?
Well, you can actually do both depending on the price action. For now, give it 24 hours. If the price is still above $0.2, then it’s a good time to buy. However, if OGN breaks below $0.2, then you can wait until it bottoms at $0.15 before getting in.