Optimism, denoted as OP, recently encountered difficulties within a crucial resistance range spanning from $1.80 to $1.90, identified as a significant level for potential breakthrough. The token tested this zone but was unable to surpass it, leading to a decline of more than 20% in the past few days.
According to crypto analyst Michaël van de Poppe:
“Optimism tested the vital resistance but experienced a drop of over 20% in recent days.”
As of the latest update, OP was trading at $1.52, with a daily trading volume of $614.9 million. The market capitalization stands around $1.9 billion, considering a circulating supply of 1.3 billion tokens.
Key Levels of Support and Consolidation
Observing the price action of OP, it reveals a phase of consolidation, with support at approximately $1.50 and resistance hovering close to $1.60. These levels play a critical role in maintaining stability in the short term. Sustaining the support at $1.50 might lay the groundwork for a potential breakout in the upcoming sessions.
The analyst further stated:
“In case of a retest at $1.80-$1.90, I anticipate a breakthrough towards an all-time high assessment in January.”
This perspective positions the resistance zone as a possible launching pad for higher price targets, aiming at levels between $2.50 and $2.60.
Evaluation of Technical Indicators Reveals Mixed Signals
At the time of reporting, the Relative Strength Index (RSI) stood at 45.38, indicating a state of neutral momentum. This suggests that although the price trend leans towards bearish, there exists room for a potential reversal under the circumstances of increased buying pressure.
To confirm a more robust bullish trend, the RSI needs to surpass the 50 marks.
While the MACD histogram exhibits early signs of bullish divergence, the momentum remains feeble.
Meanwhile, the Chaikin Money Flow (CMF) at 0.05 hints at slight capital inflows, signaling limited yet optimistic investor engagement.
Bullish Accumulation Indicated by On-chain Metrics
Recent on-chain statistics from Coinglass depict consistent net outflows, with the most recent data as of November 15 showing a total of $1.47 million leaving the exchanges.
This trend implies that OP tokens are being transferred off trading platforms, a behavior often linked to long-term accumulation or storage in private wallets.
Furthermore, data from IntoTheBlock uncovers a 21.03% rise in new addresses over the last week, indicating a surge in interest towards the token.
However, the number of active OP addresses has declined by 27.79%, pointing towards reduced transactional activity despite the increased influx of new participants.
Source: IntoTheBlock
Zero balance addresses have also seen a minor uptick by 1.77%, showcasing a slight increase in inactive accounts.