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 pattern 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 pattern line. Nevertheless, on the time of writing, Optimism was buying and selling at round $2.9 and was up by about 1.22%.
On account of this alteration in pattern, two main resistance ranges have been fashioned at $4.87 and $4.04, and a assist stage of $2.95. However at the moment, the worth has damaged previous this assist stage.
Technical Indicators Level Towards A Steady Downtrend For Optimism
When analyzing OP’s worth motion utilizing the each day candlestick timeframe, we are able to 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 transferring common as might be seen within the beneath picture.
Based mostly on this current change in pattern and shift in momentum, Optimism may very well be poised for a steady downward transfer, particularly within the context of the truth that the overall crypto market is experiencing a drop.
An extra take a look at the worth utilizing the MACD indicator within the each day timeframe reveals that the MACD line and the sign line have crossed, trending beneath the zero line. In the meantime, the MACD histogram can also be trending beneath the zero line. This MACD formation signifies a powerful downward momentum.
A closing 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 utterly 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 route, there may very well be a worth get away beneath its earlier assist stage of $2.61. Additionally, it may very well be doable that the worth may transfer even additional towards attaining a brand new assist stage.
Nevertheless, with the historical past of the exponential development related to OP, If the worth fails to interrupt or transfer beneath its earlier assist stage of $2.61, a brand new upward pattern may start subsequently propelling the worth as much as retest its earlier resistance ranges.
Featured picture from Shutterstock, chart from Tradingview.com