The Origin Protocol price has done well in the past few months. The OGN token is trading at $0.4730, which is about 100% above its lowest level this year. As a result, its total market cap has risen to about $229 million, while its diluted value is $485 million. Nevertheless, its price is still about 86% below the highest level in 2021.
What is the Origin Protocol?
Origin Protocol is a blockchain project that seeks to disrupt the decentralized finance (DeFi) and non-fungible token (NFT) industries. It offers a stablecoin known as Origin Dollar (OUSD) that provide holders with a daily yield. This is in contrast to other popular stablecoins like Tether and Terra USD that don’t offer any return. OUSD has a market value of about $152 million.
Origin Protocol also offers Story, an NFT platform that lets developers build and sell NFTs to thousands of customers. To sellers, the platform enables them to customize their storefronts and set multiple payout methods. Finally, it has the OGN token, which allows people to stake in the Origin Protocol and make money.
It is unclear why the Origin Protocol price has risen sharply in the past few days. However, we can identify some potential risks that it faces. For one, there are signs that the NFT bubble is bursting as high-interest rates come into the equation. For example, sales in OpenSea have dropped sharply. Fee revenue in the platform crashed by 52% in February to about $204 million. The same trend is happening in the DeFi industry, where the total value locked in the network has dropped sharply recently. As rates start rising, there is a likelihood that this trend will continue.
Origin Protocol price prediction
On the daily chart, we see that the OGN price has been in a bearish trend in the past few weeks. The coin has managed to drop by over 86% from its all-time high. A closer look reveals that it has formed a descending channel that is shown in black. The current price is between this channel.
The coin has also moved slightly above the 25-day and 50-day moving averages while the Smart Money Index (SMI) has pointed upwards. Therefore, there is a likelihood that the Origin price will keep rising as bulls target the upper side of the channel at $0.82. A drop below the support at $0.34 will invalidate this view.