Analyst predicts ATH in January as Optimism faces key test at $1.90

Optimism faces key test at $1.90 – Analyst predicts ATH in January

Positivity [OP] has encountered recent obstacles at a significant resistance range spanning from $1.80 to $1.90, highlighted as a crucial breakout level. OP tested this zone but was unable to surpass it, leading to a decline of more than 20% in the past few days.

A crypto analyst, Michaël van de Poppe, observed,

“OP tested the vital resistance level but experienced a drop of over 20% in the recent days.”

As of the current moment, OP is trading at $1.52, with a 24-hour trading volume of $614.9 million. The market capitalization stands at around $1.9 billion, based on a circulating supply of 1.3 billion tokens.

Key Support and Consolidation Levels

The price action of OP suggests consolidation, with support around $1.50 and resistance near $1.60. These levels play a significant role in maintaining stability in the short term. A successful hold at $1.50 support could set the stage for a potential breakout in the future.

The analyst further mentioned,

“If there is another test at $1.80-$1.90, I anticipate a breakthrough leading to an all-time high test in January.”

This projection positions the resistance range as a possible catalyst for higher price levels, with targets set around $2.50-$2.60.

Technical Indicators Display Divergent Signals

At the time of writing, the Relative Strength Index (RSI) stood at 45.38, indicating a neutral momentum. While the price trend might lean towards the bearish side, there is scope for a potential reversal if buying pressure strengthens.

A move above 50 in the RSI is essential to confirm a more pronounced bullish trend.

The MACD histogram demonstrates early indications of bullish divergence, although the momentum remains subdued.

On the other hand, the Chaikin Money Flow (CMF) at 0.05 suggests marginal capital inflows, hinting at modest yet positive investor engagement.

On-Chain Metrics Reflect Positive Accumulation Trends

Recent on-chain data from Coinglass indicates consistent net outflows, with the most recent figure on November 15 reaching $1.47 million.

This pattern suggests that OP tokens are being transferred off exchanges, a behavior commonly associated with long-term accumulation or storage in private wallets.

Furthermore, data from IntoTheBlock reveals a 21.03% surge in new addresses over the past week, showcasing a growing interest in the token.

However, active addresses for OP have decreased by 27.79%, indicating reduced transactional activity despite the influx of new participants.

Additionally, zero balance addresses witnessed a slight increase of 1.77%, pointing towards a minor rise in inactive accounts.

Source: IntoTheBlock

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