- OP crypto price trades beneath the essential EMA levels, showcasing the bearish moves.
- The Optimism price forecast suggests that the price will test the $1.818 in upcoming sessions.
The charts for OP crypto indicate that there has been a downward trend in selling pressure, with lower lows being formed over the past few months. Additionally, trading volume has been below average due to declining investor interest.
The decline in user activity has also added to the negative sentiment surrounding crypto, leading to a bearish outlook on the charts.
Optimism (OP) is a secondary layer blockchain that enhances Ethereum by implementing optimistic rollups. This innovation allows for transactions to be processed on Optimism with the final validation and security provided by the Ethereum mainnet.
Optimism boasts a Total Value Locked (TVL) exceeding $500 million as a prominent solution for Ethereum’s expansion and hosts 97 protocols. Notable among these is Synthetix (SNX), a platform for trading synthetic assets. Uniswap (UNI) is a decentralized exchange, and Velodrome (VELO) is an automated market maker. Users can integrate the network into their Metamask wallet to engage with Optimism and transfer assets like ETH to Layer 2. Optimism marked a significant milestone with the eagerly awaited release of its OP token through an airdrop on May 31, 2022.
Technical Analysis of OP Crypto Price Over Daily Timeframe
The current trend favors bears, and the crypto is in a corrective phase, making buyers cautious. Furthermore, the OP is trading below the significant moving averages and is attempting to reach the 50-day EMA for a potential recovery rally.
As of writing, OP is trading at $2.356 and has seen an intraday gain of 2.56%, bouncing from the lower trendline near the support level of $1.818. Trading volume has increased to 201.28 Million, and the market cap is currently at $2.46 Million.
The performance of the crypto has been poor over the years. It has given negative returns of 36.44% year-to-date and a positive return of 71.65% in the last six months. In the past month, it has seen negative returns of 39.85% and a nominal return of 5.84% over the previous seven days. It indicates that the bearish momentum is continuing.
Currently, the OP crypto price is trading below the 50 and 200-day EMAs, indicating a lack of support for the price trend and movements. The current RSI value is 38.58 points, and the 14 SMA stands at 35.77 points, suggesting that OP crypto is bearish.
The MACD line is currently at -0.234, whereas the signal line is at -0.279, and both are trading sideways. The MACD indicator shows a bearish crossover, signaling more bearishness for the Optimism crypto price.
4 Hour time frame Technical Analysis
The 4-hour charts depict a bearish trend with low volume levels, indicating no upcoming price rise. Additionally, a key indicator shows bearishness and does not signal a bullish shift. The RSI curve is close to the neutral range, and the short-term charts display a narrow consolidation move. The MACD indicator shows green bars on the histogram, indicating a bullish crossover, but does not suggest any significant upswing.
Summary
The current trend favors bears for the OP crypto, which is currently in a corrective phase. The crypto is attempting to reach the 50-day EMA for a potential recovery rally but is trading below significant moving averages. The performance of the OP crypto has been better over the years, with negative returns year-to-date and in the past month. The 4-hour charts depict a bearish trend with low volume levels, indicating no upcoming price rise. The MACD indicator shows a bearish crossover, signaling more bearishness for the Optimism crypto price.
Technical Levels
Support Levels: $1.818
Resistance Levels: $2.885
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.