- 1
OP price is currently trading at $2.026 while dropping 8.96% in 24-hour trading volume. - 2
OP price is observing a decline of 4.48% in the last 24 hours. - 3
Optimism price trades above the 200 EMA.
The OP price is currently presenting a bullish outlook regarding future price action. For the past few days, the sentiments of the investors were trading around the fear zone which made an impact on the price where after taking resistance from $2.800 the Open Networks’ previous resistance level the price took a slight decline of 27%.
The buyers did make an attempt to push the price up from 100 EMA level but it was proven to be futile. Studying the historical price action it is observed that the price has been taking constant support from $2.000. It was also indicated in the previous analysis that the price of OP will gain buyers’ support near its support zone which was proven correct.
OP Price is Trading Under the Demand Zone (1-Day Timeframe)
Previously, near mid-April in the analysis regarding Optimism, it was predicted that OP price might take support from its demand zone and make a bullish reversal. The price was also making a bullish (W) pattern, and the oscillators were trading near oversold levels.
The analysis was proven correct; the price gained buyers’ support and it made a bullish rally of 37% on the daily timeframe. Keeping up with the technical indicators indicating that RSI and Stochastic RSI were also trading in the bull’s favor.
Technical Analysis (1 Day Timeframe )
The RSI line is trading below 14 SMA taking resistance from it above 30 RSI points. The current value of RSI is 38.02 points whereas the 14 SMA is providing resistance to it at around 41.36 points. The RSI line is trading near oversold levels which indicates it may soon cross above 14 SMA in the near future.
The stochastic RSI has recently reached oversold levels on the daily timeframe. The %K and %D lines are giving a bearish intersection to each other though as the Stochastic RSI is trading near the oversold level the chances of a bullish reversal seem more probable. The present value of stochastic RSI is 17.63 points.
Conclusion
According to the analysis, the price of the Optimism token is giving positive indications of making a reversal. The price is trading at a crucial support level above the 200 EMA and it has not given a close below it in the last 6 months. The path of least resistance for OP price is bullish.
Technical levels –
Support -$1.932
Resistance – $2.800
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.
Source: https://www.thecoinrepublic.com/2023/05/05/op-price-analysis-will-the-op-price-start-moving-uphill/