Optimism (OP) Faces Potential Decline To $1.80 — Analyst
Optimism (OP) has experienced a market rally over the past week, rising 35.76%, according to CoinMarketCap. The Ethereum Layer-2 token is hovering above $2.20, with investors strongly bullish on future price gains. However, some trading indicators are sending the opposite signal.
Optimism could drop 18%
exist X Posted on November 23Renowned crypto analyst Ali Martinez has shared a pessimistic forecast amid optimism despite the coin’s current upward trend.
According to Martinez, TD Sequential has issued a sell signal on OP’s 4-hour trading chart, indicating that a drop in price may be imminent. In the trading market, Tom Demark (TD) Sequential Indicator Often used to identify potential price exhaustion or continuation by analyzing patterns within price bars.
After the OP surge over the past week, the TD series now indicates trend exhaustion, suggesting a possible price reversal. As this signal develops, Martinez predicts that OP may slip to $2.0. However, further correction could force the coin price down to around $1.80, which suggests that the current market price could fall by 18%.
Martinez’s price predictions are further supported by the OP Relative Strength Index, which measures the speed and magnitude of an asset’s price movements to determine whether it is overbought or oversold. According to data from the OP’s 4-hour trading chart, the coin has an RSI value of 65.18 and is falling from the overbought zone, indicating that buying pressure is waning and a potential price correction is imminent.
However, optimism remains well above the 100-day simple moving average (SMA), suggesting the uptrend may continue. This factor, combined with the current situation Strong bullish sentiment in the altcoin market Indicating that OP is likely to maintain the current price gains as high as $2.5, which is the next significant market resistance level.
Optimistic Price Overview
At press time, Optimism was trading at $2.29, up 1.64% in the past 24 hours. Meanwhile, the altcoin’s daily trading volume fell by 13.17% and was worth $860.51 million. OP’s performance on a larger time frame has been impressive, as mentioned earlier OP was up 35.76% in 7 days and 33.77% in the past 30 days.
Despite its recent gains, the Ethereum layer 2 token is still 54.65% away from its all-time high of $4.85. However, considering OP’s position in the Ethereum ecosystem, it remains an investor favorite. According to data Top 7 ICOsOn the bright side is the Ethereum layer 2 network, which ranks third in total value locked (TVL), worth $6.46 billion, behind Base ($7.02 billion) and Arbitrum ($14.3 billion).
