Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
- The bias appeared to be firmly bearish on the every day chart
- Decrease timeframes additionally confirmed sturdy bearish sentiment
Optimism [OP], at press time, was buying and selling close to its lowest level, a degree it reached on 5 March. Following the weekend dump, the value bounced to the $2.5-zone however confronted rejection round that space of resistance. The bounce in worth coincided with the replace that Optimism just lately shared concerning the Goerli nodes.
Learn Optimism’s [OP] Worth Prediction 2023-24
Owing to the uncertainty round Bitcoin and the sentiment throughout the market, it seems seemingly that OP may see additional losses over the subsequent two weeks. And but, one other bounce in direction of $2.5 can’t be discounted.
A variety formation, sustained dump, or a bullish breakout for OP?
The 4-hour charts confirmed a transparent break out there construction on 3 March, when the next low on the chart was breached. The identical degree was later retested as resistance earlier than additional losses. At press time, the value sat atop the latest decrease low at $2.25, one marked by the dotted white line.
Two eventualities may unfold within the coming days. One was a bounce in worth in direction of the $2.5-mark to revisit the earlier bearish order block earlier than the subsequent transfer south. The following state of affairs can be a straight drop under $2.25, one which might be indicative of aggressive promoting throughout the market.
Therefore, there are two attainable trades – A extra conservative strategy can be to attend for OP to retest the bearish order block at $2.45-$2.55. A rejection from that zone may very well be used to enter a brief place, with invalidation above $2.59.
However, aggressive promoting within the coming hours may push OP below $2.25. In that state of affairs, a retest of the $2.25-$2.4 area can be utilized to quick the asset. Nonetheless, the construction would solely be damaged on a transfer again above $2.59, which makes this state of affairs riskier for merchants.
How a lot are 1, 10, 100 OP value immediately?
The RSI was under impartial 50 on the 4-hour chart and the OBV has been on a gentle downtrend over the past ten days. This advised that promoting strain was important and will proceed to stay that means.
To the south, $2 and $1.9 are ranges the place consumers may pressure a bounce in costs and the place short-sellers can look to e book income.
Open Curiosity advised aggressive promoting may very well be imminent
The funding fee was optimistic, however that was the one brilliant spot for decrease timeframe bulls. OP registered a big hike in Open Curiosity, one which measured near $10 million over the previous few hours. Throughout that point, the value was steadily falling on the charts too.
This signalled the excessive likelihood of huge quick positions being opened and was an indication of heavy bearish sentiment. And but, the spot CVD noticed a tiny uptick over the identical interval – Proof of some pushback from the bulls.