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Is $OP Ready to Hit $4? – Crypto News

Published

1 year ago

April 28, 2024

Dripp

Optimism Price Prediction: A majority of major cryptocurrencies have been trading sideways since the completion of the fourth Bitcoin halving on April 19th. Along with the BTC price wavering around $63000, the market participants see no firm initiation from bulls or bears. However, the layer 2 tokens of the Optimism blockchain, OP, have displayed strong buyer commitment as evidenced by the formation of a new higher low on the daily chart. Should you enter the current dip?

Optimism Coin Aims for a Turnaround With a Sharp Intraday Jump

BINANCE:OPUSDT Chart Image by sahilmahadik07 — OP price

The Optimism coin has been in a marked decline for the past two months, as indicated by a sharp downward trendline on the daily chart. The coin price reverted thrice from this dynamic resistance indicating the traders continue to sell this asset at market bounce, a key sign of an established downtrend.

However, with the recent Bitcoin halving, the OP found suitable around the $2 psychological level to form a local bottom. A positive turnaround from this support has uplifted the asset by 45% within a fortnight to the current trade at $2.63.

With a 12.6% intraday jump, the coin price teases a breakout from the overhead trendline. A daily candle closing above the resistance trendline will signal a change in market dynamics favoring buyers.

The post-breakout rally could surge the Optimism coin to a potential target of $3.4, followed by $4, and $4.78.

On a contrary note, if the supply pressure and a descending trendline persist, the ongoing consolidation may prolong aiming for a breakdown below the $2 support.

Technical Indicator:

Relative Strength Index: The daily RSI slope heading to the 50% midline indicates the negative market sentiment is improving to neutral.
Exponential Moving Average: The 20-day EMA slope continues to act as a dynamic resistance to OP price during a bullish bounce and also indicates an accelerated downward trend.