The ICO token with the largest market capitalization continues to hold its own.

At press time Monday, OmiseGo, a token issued in July by online payments startup Omise, was demonstrating traction amongst traders even amidst a bearish news cycle. In recent weeks, South Korea and China have moved to ban ICOs, and though secondary market trading is unaffected, the sector has taken a psychological and reputational hit.

The OMG/USD exchange rate pushed prices to a low of $8.95 on Friday, but the minor blip was quickly undone. That said, it’s unclear how much higher prices may go.

The token repeatedly failed to gain altitude above $10 levels over the weekend, though it did defend the 38.2% Fibonacci support of $9.06. At press time, the token is trading at $9.40; down 3 percent as per CoinMarketCap. The ICO token has shed 5.2 percent week-on-week and 12.80 percent month-on-month.

Still, heading into the afternoon sessions, OMG looks heavy as the technical chart carries a bearish undertone.

The price action analysis suggests the OMG/USD exchange rate could witness a knee-jerk sell-off if the support at $9.06 is breached.

4-hours chart

The chart above shows:

Rejection at $11 and lower highs formation over the weekend

Bearish crossover between the 50-MA and 200-DMA. The bearish crossover occurs when the short-term moving average cuts the long-term moving average from above.

Thus, a break below $9.06 (38.2% Fibonacci retracement) would add credence to the bearish price action and shall open doors for a sell-off to $7.40 (50% Fibonacci retracement) and $6.588 (September 15 low).

On the higher side, a move above $10.38 would open up upside towards $11.80 levels.

Correction: An earlier version of this article stated that Korea has banned secondary market trading for ICO tokens. This has been corrected.

Tokens in water image via Shutterstock