OP, the native token of Optimism, broke out of an uptrend after setting a brand new all-time excessive of $4.87. The value has continued to drop since then, and at the moment factors to a steady downward drop.
Evaluation of the crypto asset’s development signifies that the worth is on a downtrend which is at the moment buying and selling beneath the 100-day Shifting Common (MA) and the development line. Nonetheless, on the time of writing, Optimism was buying and selling at round $2.9 and was up by about 1.22%.
Because of this transformation in development, two main resistance ranges have been fashioned at $4.87 and $4.04, and a assist degree of $2.95. However at the moment, the worth has damaged previous this assist degree.
Technical Indicators Level Towards A Steady Downtrend For Optimism
When analyzing OP’s value motion utilizing the each day candlestick timeframe, we will see that after a drop from its all-time excessive, the token was unable to bounce again. This has led to the worth buying and selling beneath each the trendline and the 100-day shifting common as will be seen within the beneath picture.
Primarily based on this latest change in development and shift in momentum, Optimism might be poised for a steady downward transfer, particularly within the context of the truth that the final crypto market is experiencing a drop.
An extra take a look at the worth utilizing the MACD indicator within the each day timeframe exhibits that the MACD line and the sign line have crossed, trending beneath the zero line. In the meantime, the MACD histogram can be trending beneath the zero line. This MACD formation signifies a robust downward momentum.
A last take a look at the chart with the Bull energy vs. Bear energy indicator from the each day timeframe reveals from the histogram that sellers have fully taken over the market. Consequently, consumers have progressively misplaced momentum to push the worth upward.
How Low Can OP Go?
If the worth of Optimism continues to rally within the downward course, there might be a value escape beneath its earlier assist degree of $2.61. Additionally, it might be doable that the worth might transfer even additional towards attaining a brand new assist degree.
Nonetheless, with the historical past of the exponential development related to OP, If the worth fails to interrupt or transfer beneath its earlier assist degree of $2.61, a brand new upward development might start subsequently propelling the worth as much as retest its earlier resistance ranges.
Featured picture from Shutterstock, chart from Tradingview.com