- OP drops below the lower trendline shows a negative outlook.
- Bulls were looking trapped and remained cautious.
The optimism (OP) token slipped below the 20-day EMA and showed bearishness on the charts indicating that aggressive selling took place and bulls could not hold the price near the trendline. However, amid the breakdown, bulls tried to get inside the pattern and recover the gains again.
Recently, a bearish phase was seen in the optimism token showing a slide in momentum which shows the price slipping below the 20-day EMA, and bulls are faced with an intense throwback, resulting in the token’s recent downturn.
If the bearishness in the token persists in further sessions, the OP token may punch the primary support level of $1.200. Although the token is at the vital support mark where a bounce is possible, substantial selling volume was there, which may proceed to follow on selling in the token. The downturn is intense, and sellers looked strong in the last session and continued to make short positions.
When writing, the OP token trades at $1.410 with a massive intraday drop of 7.77%, showing huge bearish indications. Moreover, the pair of OP/BTC is at 0.000052 BTC, and the intraday trading volume increased by 43.70% to $250.61 million. The day high of OP is $1.544, and the day low is $1.411. The market cap of OP is $303.76 million.
This breakdown shows buyers were trapped and covering their long positions due to the selling pressure in the token. Meanwhile, the price action delivers strong negative sentiments due to the conviction from multiple phases.
Daily Charts Shows Intense Selling
On the 4-hour charts, the OP token dropped below the key EMA, and a selloff was noted on the charts. Moreover, the technical parameters suggest negative cues based on the recent breakdown.
The RSI curve shows a steep decline, and a negative divergence was formed, resulting in the token’s selling.
The MACD curve also showed red bars on the histogram, and a massive drop with substantial volumes was noted, which shows bears dominance in the token.
What Technical Indicators Suggest?
On the 4-hour charts, the OP token dropped below the key EMA, and a selloff was noted on the charts. Moreover, the technical parameters suggest negative cues based on the recent breakdown.
The RSI curve shows a steep decline, and a negative divergence was formed, resulting in the token’s selling.
The MACD curve also showed red bars on the histogram, and a massive drop with substantial volumes was noted, which shows bears dominance in the token.
Conclusion:
Optimism token is losing strength below the significant Fib level, and the price is dragging below the support mark of $1.500.
Technical Levels
Support Levels: $1.200
Resistance Levels:$2.000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.