The Optimism (OP) Price Breaks Out
The price of Optimism (OP) has been on the rise since breaking out from a descending resistance trend line in October. This upward movement has led OP to approach a key horizontal resistance area. The question now is whether the price will break out from this area.
Optimism Gradually Approaches $2
After reaching an all-time high of $3.30 in February, the price of OP had been decreasing under a descending resistance trend line. It reached a low of $0.90 in June but bounced back and created a higher low in October.
After four unsuccessful breakout attempts, OP finally broke out from the trend line in October, which had been in place for 260 days. The price increase peaked at $1.93 last week.
However, OP has not yet broken out from a key horizontal resistance area that has acted as both support and resistance since June.
RSI Indicates Positive Momentum
The Relative Strength Index (RSI) is an important indicator used by market traders to identify overbought or oversold conditions and make decisions about buying or selling assets. Readings above 50 and an upward trend suggest that bulls have an advantage, while readings below 50 indicate the opposite.
The RSI for OP is currently increasing and above 50, which are positive signs for the price.
What Are Analysts Saying?
Cryptocurrency traders and analysts have mixed views on the future price trend of OP. CryptoPoseidonn believes that the market structure has been broken and predicts a bearish market. On the other hand, Caleb Franzen suggests that a bullish trend may occur if the price breaks out from the resistance levels at $1.90.
OP Price Prediction: Can Price Move Above $2?
Technical analysis of the daily timeframe shows that the $1.90 horizontal resistance area is crucial for OP. This area aligns with the resistance line of an ascending parallel channel that has been in place since June.
Despite the strong resistance at $1.90, the daily RSI indicates a potential continuation of the price increase. A breakout could lead to a 70% increase and reach the all-time high resistance at $3.10.
However, if the price is rejected at $1.90, there may be a 30% drop towards the support trend line of the channel at $1.20.
Hot Take: Optimism (OP) Price Breakout Imminent?
The price of Optimism (OP) has shown positive momentum since breaking out from a long-term descending resistance trend line. While it has not yet broken out from a key horizontal resistance area, technical analysis suggests that a breakout may be imminent.
Analysts have mixed views on the future price trend, with some predicting a bearish market structure and others suggesting a bullish breakout if certain resistance levels are breached.
Overall, OP’s price movement will be closely watched as it approaches the $2 mark and traders assess whether it can continue its upward trajectory or face a potential pullback.
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