Calculating the odds of Optimism [OP] sliding down to $2 this week

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion

• The bias appeared to be firmly bearish on the every day chart
• Decrease timeframes additionally confirmed sturdy bearish sentiment

Optimism [OP], at press time, was buying and selling close to its lowest level, a degree it reached on 5 March. Following the weekend dump, the worth bounced to the $2.5-zone however confronted rejection round that space of resistance. The bounce in worth coincided with the replace that Optimism just lately shared concerning the Goerli nodes.

Learn Optimism’s [OP] Value Prediction 2023-24

Owing to the uncertainty round Bitcoin and the sentiment throughout the market, it seems probably that OP might see additional losses over the subsequent two weeks. And but, one other bounce in direction of $2.5 cannot be discounted.

A spread formation, sustained dump, or a bullish breakout for OP?

The 4-hour charts confirmed a transparent break available in the market construction on 3 March, when the next low on the chart was breached. The identical degree was later retested as resistance earlier than additional losses. At press time, the worth sat atop the newest decrease low at $2.25, one marked by the dotted white line.

Two situations might unfold within the coming days. One was a bounce in worth in direction of the $2.5-mark to revisit the earlier bearish order block earlier than the subsequent transfer south. The subsequent state of affairs could be a straight drop beneath $2.25, one which might be indicative of aggressive promoting throughout the market.

Therefore, there are two potential trades – A extra conservative strategy could be to attend for OP to retest the bearish order block at $2.45-$2.55. A rejection from that zone might be used to enter a brief place, with invalidation above $2.59.

However, aggressive promoting within the coming hours might push OP below $2.25. In that state of affairs, a retest of the $2.25-$2.4 area can be utilized to quick the asset. Nonetheless, the construction would solely be damaged on a transfer again above $2.59, which makes this state of affairs riskier for merchants.

How a lot are 1, 10, 100 OP value as we speak?

The RSI was beneath impartial 50 on the 4-hour chart and the OBV has been on a gradual downtrend over the past ten days. This advised that promoting stress was vital and will proceed to stay that method.

To the south, $2 and $1.9 are ranges the place patrons might drive a bounce in costs and the place short-sellers can look to ebook earnings.

Open Curiosity advised aggressive promoting might be imminent

Supply: Coinalyze

The funding charge was constructive, however that was the one shiny spot for decrease timeframe bulls. OP registered a major hike in Open Curiosity, one which measured near $10 million over the previous few hours. Throughout that point, the worth was steadily falling on the charts too.

This signalled the excessive chance of enormous quick positions being opened and was an indication of heavy bearish sentiment. And but, the spot CVD noticed a tiny uptick over the identical interval – Proof of some pushback from the bulls.