Optimism price prediction suggests this correction looks temporary and buyers will soon come forward to give a bounce. It witnessed minor profit booking which is good for the better price discovery.
OP price had performed well in the last few weeks and showed a sharp rise of 37% on the December 22, 2023 session. It broke out of the $3.00 hurdle with a more-than-average volume and formed a giant bullish candle.
The sharp move in OP crypto price has attracted more investors and fueled the rally. However, the momentum took a halt near $4.00 and the price faced rejection.
At present, the price is retracing down, and might retest the 50-day EMA in the coming week. By analyzing the price behavior and chart pattern it can be said that. Bulls are active near the $3.00 level and they will anytime come forward and trigger a sharp bounce.
Last week, a massive breakout in the OP token looks powerful so big players might be present near support. So, they will not let the sellers drag the price below $3.00 and the downside risk looks limited.
Optimism Price Retraces Down; Will Bulls Defend the $3 Support?
Optimism price showing initial signs of the beginning of correction due to which short-term traders may look to exit. However, for long-term investors, this correction is an opportunity to accumulate more.
As long as the OP crypto price sustains above the $3.00 support the bulls will maintain their dominance. So, new participants and existing long-term investors may look to buy more to generate nominal returns.
The analysis suggests that OP bulls will try their best to defend $3.00 support and keep the trend in an upward direction.
OP Price Looks Mildly Overstretched
OP price looks mildly overstretched on a daily and weekly time frame chart. So, a short-term correction or narrow-range consolidation is good for further upside.
The Optimism crypto is trading near the year-till-date high is a favorable scenario for investors to bet more on minor dips because momentum just began.
The next sharp move in OP may be visible after the $4.00 breakout. So, till then investors should keep an eye on the $3.00 level, which will be a crucial support level.
Conclusion
Optimism price prediction suggests bulls might soon come forward to defend the support and give a bounce. Therefore, the investors should take the downfall as an opportunity to accumulate more for the future.
Technical levels
- Resistance levels: $4.184 and $5.002
- Support levels: $3.002 and $2.517
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
Source: https://www.thecoinrepublic.com/2023/12/29/optimism-price-fell-10-is-it-time-to-accumulate-more-on-dips/