The OP Price Broke An Important Support Zone?

The OP price recently broke its crucial support zone near the 200 EMA last week. Recently, the sentiments of the investors trading around the fear zone the price is currently seeing a decline of 31%. The price is currently trading below all the major -20,-50,-100,-200 EMA levels.

The current value of OP is $1.66, It has a market cap of $558.06.

OP Price is Seeing a Severe Decline (1-Day Timeframe)

The TVL (Total Value Locked) of OP price is seeing a surge since early January. The TVL line is moving near its all-time high value. The amount of transactions made through the platform is also observing a significant increase. The Transaction value reached 80K TXs near mid-April. The present TVL value is $850.30M seeing a decrease of 0.46% within the last 24 hours. 

The market sentiments are observing a significant decline since last week, as per the greed and fear index, provided by the Alternative (dot) me platform. The current value of market sentiment is 48 in the sentiment index. It is recording a sharp decline of 13 points within the last week where the sentiments were around 61 points.

The bulls are at present dominating the price of OP tokens across most of the major cryptocurrency exchange platforms, as per Coinglass.

Technical Analysis (1 Day Timeframe )

The RSI line has been trading below 14 SMA taking constant resistance from it above 30 RSI points. The current value of RSI is 32.35 points whereas the 14 SMA is providing resistance to it at around 33.26 points. The RSI line is trading near oversold levels which suggests it may soon make an attempt to cross above 14 SMA in the near future.

The stochastic RSI has recently taken a reversal from the oversold levels on the daily timeframe. The %K and %D lines are giving an intersection to each other. As the Stochastic RSI is trading near the oversold level the chances of a bullish continuation seem more probable. The present value of stochastic RSI is 41.29 points.

Technical levels –

Support -$1.419  

Resistance – $2.800

Conclusion

Despite buyers did attempt to push the price up from the 200 EMA level, it was proven to be futile. It was estimated in the previous analysis that the price of OP may gain buyers’ support around its support zone which was proven to be correct.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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