The Origin Protocol price went parabolic on Wednesday morning as the developers unveiled a new tokenomics mechanism for the network. The OGN price is trading at $0.3430, which was about 135% above the lowest level in May this year. As a result, the coin’s market cap has surged to over $134 million. Still, the coin is about 51% below where it was in April this year.
The Origin Protocol price did well after the developers announced plans to ramp up their efforts to launch Origin Dollar Governance (OGV). When fully launched, OGV will become the governance and value accrual token for Origin Dollar, which is the stablecoin for the ecosystem. The goal is to separate OUSD and OGN utilities for the ecosystem.
Later on Monday, the developers will start campaigns for the prelaunch of liquidity mining. Later in the month, they will publish the final list of all exchanges supporting OGV. The OGV airdrop will then happen on July 12th. The developers added:
“1 billion OGV will be distributed to OGN holders along with the rewards for the prelaunch liquidity mining campaign participants on July 12. The total supply of OGV on July 12 will be 4 billion, with the vast majority being locked for 1 to 4 years. “
Still, while this announcement is positive for the Origin Protocol price, the reality is that token prices tend to have a pullback after having such a parabolic move. This usually happens as the excitement of the news fades.
Origin Protocol price forecast
The two-hour chart shows that the OGN price has been in a strong bullish trend in the past few days. As it rose, the coin managed to move above the important resistance level at $0.2718, which was the highest level on May 19th. The coin remains above the 50-period moving average while the Relative Strength Index (RSI) has moved above the overbought level.
Notably, the Origin Protocol has formed a bullish flag pattern. Therefore, in the near term, there is a likelihood that it will have another bullish breakout to $0.50. However, in the coming days, there is a possibility that the coin will have a pullback as the excitement of the new launch fades, The stop-loss for the initial bullish view is at $0.30.