Optimism price recently fell under a descending parallel channel, marking a shift in its price trajectory. At present, it’s in the process of attempting a reversal from its current position. The success of this reversal hinges on the ability of OP crypto to entice buyers, enabling it to regain its footing within the confines of the channel.
Nevertheless, this return journey appears to be quite a distance, considering the challenges OP is encountering in building a robust upward momentum. As traders and investors monitor this situation, the crypto community remains watchful for signs of a potential resurgence, which could mark a pivotal turning point for Optimism’s price trend.
Optimism price was at $1.444 and has gained 2.48% of its market capitalization intraday. Trading volume has decreased around 2.77% during the intraday trading session. This demonstrates that sellers are still there to pull OP crypto downwards. Volume to market cap ratio was 12.45%.
Will Optimism Price Bounce Back in the Channel?
Optimism (OP) price is on a decline since August 12th, exiting the declining parallel channel depicted on the daily chart. In order to make a comeback within the confines of that channel, OP cryptocurrency needs more buyer presence.
To achieve this, there’s a requirement for an uptick in the accumulation rate of buyers, thereby reinstating OP into its recovery trajectory. Below average trading volume emphasizes the requirement.
Optimism price has experienced a decrease of approximately 6.64% within a week and 2.23% over the course of a month. Over the past three months, OP crypto declined by about 16.64%, and in the preceding six months, it dropped around 48.14%. Despite these fluctuations, it’s worth noting that Optimism crypto managed to make a recovery of approximately 57.91% year-to-date.
Technical indicators show divergence over the price action of Optimism price. Relative strength index (RSI) points the upside trend of OP crypto. However, moving average convergence divergence (MACD) highlights the downtrend in OP crypto price.
RSI was at 42 and is heading towards neutrality. The MACD line is below the signal line after a negative crossover. Investors in Optimism crypto need to wait for any directional change over the daily time frame chart.
Summary
Optimism price recently experienced a breakdown from its descending parallel channel, indicating a change in its price direction. However, the path back to recovery seems to be a considerable distance away, given the difficulties that OP is facing in establishing a strong upward movement. It’s important to highlight that the current shift in trading volume is lower than the typical average, which underscores the need for an intraday rise. Technical indicators reveal a divergence in relation to the price movement of Optimism.
Technical Levels
Support Levels: $1.372 and $1.20
Resistance Levels: $1.50 and $1.60
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 or stock 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/2023/08/17/optimism-price-forecast-op-slipped-from-an-interesting-channel/