Optimism (OP) Price Analysis: Is a Correction Inevitable?
Optimism (OP) price has surged by 10% in the last 24 hours, indicating a potential uptrend. However, despite this positive momentum, there are some bearish signals in the broader market that could lead to a correction of up to 15% in the near future. Here’s what you need to know:
Optimism Faces Bearish Pressure
- Optimism price is currently at $3.78, following a 10.81% increase in the last 24 hours.
- The recent surge in price has intensified selling pressure, as reflected in the Market Value to Realized Value (MVRV) ratio.
The MVRV ratio for Optimism is at 10.16%, indicating that recent buyers are sitting on profits and may start selling soon. Typically, an MVRV ratio between 3% and 9% signals a potential correction in the price.
Major Resistance for OP
- Investors have accumulated 95 million OP within the $3.87 to $4.85 range, totaling $361 million.
- This significant supply could pose a challenge for Optimism price to break above the key resistance level at $4.
If investors start selling their holdings, it could lead to a correction in the price as OP struggles to surpass the $4 resistance level.
OP Price Prediction: What if Not a 20% Rally?
- If bearish signals persist, Optimism price could drop to $3.40 and further to $3.20.
- However, a Golden Cross on the 4-hour chart suggests a potential bullish trend reversal in the market.
The Golden Cross, where the 50-day Exponential Moving Average crosses above the 200-day EMA, could lead to a significant rally in Optimism price, pushing it towards $4.50 and potentially flipping $4 into a support level.
Hot Take: What Should You Do Next?
Keep a close eye on the bearish signals in the market, as they could impact Optimism price in the coming days. Consider the following:
- Monitor the MVRV ratio for any significant changes in investor sentiment.
- Watch out for the $4 resistance level as a key hurdle for OP’s price movement.
- Stay informed about any developments in the broader market that could influence OP’s price direction.
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