Optimism, OP saw a relief in the last couple of days following a slight recovery across the crypto space. It remains bearish on the daily chart as more selling lurks around the corner. Down 4% in the last 7 days.
Following a steady drop for almost two weeks, OP found support and retraced near $3.2 today. It is currently calm and appears to have finished retracing due to the current price drops.
Considering the latest decrease in Bitcoin’s price, which has triggered small drawdowns amongst some altcoins, OP may witness losses in the next couple of days. The sellers are regrouping.
Looking at the price actions from a technical standpoint, the crypto is slowly losing steam considering the latest bearish candle formation. We can expect a significant price action as soon as the selling volume increases.
Last week’s support level may pose a threat to the bears on the way down. If they manage to conquer this support, we can expect a big sell-off into the $2 range before taking a break. This range is capable of producing a buyback.
Hence, if the price advances up from the current trading level, it may tap more gains before resuming swing low. But from the look of things, more sell-offs are expected to take place.
OP Key Level To Watch
In the next leg down, the $2.6 support is a key target level to keep an eye on. If the price breaks through this support, the next level to consider would be $2.27. Below it lies the $1.93 level.
But in case of more increase, the price may recover up to $3.4 before rolling back. Higher resistance levels to keep in mind above this price level are $3.74 and $4.28 with a potential breakup.
Key Resistance Levels: $3.4, $3.74, $4.28
Key Support Levels: $2.6, $2.27, $1.93
- Spot Price: $3
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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