Optimism is an L-2 blockchain and is one of the biggest scaling solutions for Ethereum. It was founded by Jinglan Wang, Kevin Ho, Karl Floersch, and Benjamin Jones in 2019.
The Optimism price is being pushed down by resistance levels, indicating the bears want to control the trend and lower the price. The OP crypto confirmed a sign of weakness as the price spiked downward from a key level of around $4.10 on the chart.
Moreover, the crypto looks like is close to a huge drop, as it has reached the resistance level and seeking new depths from the current supply area. The past price action shows that the supply area has reacted consecutively three times and highlights the strength of the level.
Optimism Crypto At Top, Will It Plunge Or Rise Higher?
The Optimism crypto asset is demonstrating bearishness and downward momentum as it sunk below and approached the 20, and 50-Day EMA bands. The current structure is barely holding above the bands, subject to the sellers’ surge price could fall drastically.
In the same way, the asset is showing sturdy bearish signs as MACD is at 0.148, the signal line is at 0.150, and the histogram is at -0.003. These values of the MACD indicator represent bearish pressure increasing. Similarly, the RSI is below the 14-SMA, indicating that the OP crypto asset is approaching the bearish zone and can go lower. Meanwhile, the RSI is at 53.40, and the 14- SMA smoothened line is at 60.62.
On analyzing the past week, it has shows a 5.13% drop. Optimism crypto asset is displaying bearish characteristics and could fall drastically in the upcoming sessions. These characteristics regarding the crypto indicate a possible beginning of a consistent downward trend.
At the time of publishing, the CMP is at $3.669 with an incline of 0.91%, 233.52 Million trading volume of the past 24 hours over the major exchanges, and $3.51 Billion as its market capitalization.
Therefore, if the crypto price fails to stay above the dynamic support or the $3.5 support level, it could slump further and reach lower depths beyond this support.
Another possibility would be, that if the buyer shows a resurgence for the OP asset price, it could bounce back sharply from the current level and could shatter in-between resistance as well. The next goal for the price could be to reach $5.0, and in-between resistance could be $4.0 in the process.
Summary
The technical parameters exhibit a bearish behavior on the daily chart. The price structure seems like it is about to plunge from the supply region. The sentiment of traders and investors looks bearish for Optimism.
Technical Levels
Support Levels: $3.5
Resistance Levels: $4.0
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2024/02/23/optimism-crypto-can-op-crypto-price-exhibit-a-tremendous-plunge/