Osmosis [OSMO] up by 272% in December, could it be the next big crypto?
- OSMO has a bullish market structure despite a pullback.
- Key support levels could see Osmosis bulls revive the price’s uptrend.
Osmosis [OSMO] has enjoyed a stellar December on the price charts. A few hours before press time, the token reached $2.56. This represented gains of 272% in the month, which began at $0.687 on 1 December.
Osmosis has a 24-hour trading volume of $70M as a decentralized exchange for the Cosmos [ATOM] blockchain. The sentiment behind the token was also firmly bullish based on recent social media engagement.
OSMO falls nearly 30% in six hours
The swift rally to $2.56 was followed by a move southward that was almost as quick. The $1.259 and $1.788 levels have been significant in the past two months. In the past two weeks, both levels have been tested as support.
The $1.259 level saw OSMO bounce to $1.52, a region that served as resistance back then. Similarly, the $1.788 level could see OSMO climb higher again.
If OSMO prices decline further, the Fibonacci retracement levels (pale yellow) are expected to act as demand zones.
The RSI continued to underline strong bullish momentum. The OBV was also in an uptrend to denote that buying volume was consistently higher than the selling pressure. If this trend continues, OSMO can maintain its rally.
Sentiment has been strongly positive behind OSMO
AMBCrypto analyzed the social metrics of Osmosis on Santiment. The social volume has been trending higher since late October.
This is a sign that OSMO was being talked about more frequently than before, a development that usually accompanies rapid price gains.
Realistic or not, here’s OSMO’s market cap in BTC’s terms
The social volume continued to be high, showing that the public hasn’t yet moved on past the token. The Weighted Sentiment was also positive, but it has taken some downward swings in recent weeks.
Another sign that market participants believed in a token is a rising trading volume. For OSMO, the daily trading volume has skyrocketed in December. After a brief lull from the 15th to the 24th of December, the volume has picked up again.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.