Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.
- Promoting strain took OP to essential help stage.
- Detrimental funding price may help bears within the brief time period.
Promoting strain on Optimism [OP] may see bears flip the $1.165 help stage to resistance within the brief time period. The rejection of the bullish rally on the $1.419 resistance stage on 2 October ushered in a wave of sustained bearish momentum that has seen Optimism drop by 18.9% between 2 October and 13 October.
Learn Optimism’s [OP] Value Prediction 2023-24
With Bitcoin [BTC] buying and selling at sub-$27k costs, sellers may take benefit to interrupt the bullish protection on the key help stage.
Might this be the tip of bullish protection of $1.165 help?
Supply: OP/USDT on Buying and selling View
A glance southward confirmed that the $1.165 help stage has been very important for bulls. Notable bullish rallies have occurred from the help stage in June and July 2023. Regardless of Optimism’s current bearish construction, the extent has held agency to stem the bearish slide.
Nonetheless, the most recent worth motion on OP’s worth chart highlighted a weakening of the bullish protection.
The 12H timeframe confirmed that OP had posted three successive bearish candles over the previous 48 hours. This was mirrored within the Relative Power Index (RSI) crashing under the impartial 50 and hovering simply above the oversold zone, as of press time.
Moreover, the On Stability Quantity (OBV) dipped barely, though it was nonetheless on uptrend.
A break of the help stage would supply new shorting alternatives for sellers with a goal of $1.042. Nonetheless, one other profitable protection of the extent and BTC returning to $27k may see OP bulls rally once more.
Detrimental funding charges confirmed shorts had been within the majority
Supply: Coinalyze
How a lot are 1,10,100 OPs value right now?
Detrimental funding charges recommend that a lot of the futures market was brief and keen to pay funding to bears for his or her publicity. Additionally, information from Coinalyze confirmed that the Open Curiosity dipped together with worth on the four-hour timeframe.
Due to this fact, merchants can look forward to a break of the help stage earlier than including extra brief positions within the brief time period.
