Optimism (OP) Faces Potential Decline To $1.80 Analyst
Optimism (OP) has experienced a market rebound in the past week gaining by 35.76% based on data from CoinMarketCap. The Ethereum layer-2 token hovers above $2.20 with investors strongly bullish on future price gains. However, certain trading indicators signal otherwise.
Optimism Likely To Fall By 18%
In a November 23 post on X, renowned crypto analyst Ali Martinez shared a bearish prediction on Optimism despite the tokens current upward trend.
According to Martinez, the TD Sequential has flashed a sell signal on OPs 4-hour trading chart, presenting the potential for an imminent price dip. In trading markets, the Tom Demark (TD) Sequential indicator is commonly used to identify potential price exhaustion or continuations by analyzing patterns within price bars.
After OPs rally in the past week, the TD sequential now points to a trend exhaustion, suggesting a possible price reversal. Following this signal development, Martinez predicts OP could slide to $2.0. However, further correction could force the tokens price to around $1.80 indicating a potential 18% decline from the current market price.
Martinezs price projection is further backed by OPs Relative Strength Index, an indicator that measures the speed and magnitude of an assets price movement to determine if it is overbought or oversold. According to data from OPs 4-hour trading chart, the tokens RSI valued at 65.18 and descending from the overbought zone indicates buying pressure is weakening and a potential price correction is imminent.
However, Optimism remains well above its 100-day simple moving average (SMA) which suggests a possible uptrend continuation. This factor, combined with the present strong bullish sentiments in the altcoin market suggests OP may maintain its current price rally, reaching as high as $2.5 at which lies its next significant market resistance.
Optimism Price Overview
At press time, Optimism exchanges hand at $2.29 following a 1.64% gain in the past 24 hours. Meanwhile, the altcoins daily trading volume is down by 13.17% and valued at $860.51 million. On larger time frames, OP is significantly impressive notching gains of 35.76% in seven days as earlier stated, and 33.77% in the past 30 days.
Despite recent gains, the Ethereum-layer 2 token remains 54.65% away from its all-time high of $4.85. However, OP remains an investor favorite considering its status in the Ethereum ecosystem. According to data from Top 7 ICO, Optimism is the Ethereum layer-2 network with the third largest total value locked (TVL) valued at $6.46 billion falling behind Base ($7.02 billion) and Arbitrum ($14.3 billion).
Read more: https://www.newsbtc.com/optimism-2/optimism-op-faces-potential-decline-to-1-80-analyst/
Text source: NewsBTC