OP, the native token of Optimism, broke out of an uptrend after setting a brand new all-time excessive of $4.87. The worth has continued to say no since then and is presently indicating a continued downward decline.
Evaluation of the crypto asset’s pattern signifies that the value is in a downtrend, presently buying and selling beneath the 100-day shifting common (MA) and the trendline. Nonetheless, on the time of writing, Optimism was buying and selling round $2.9 and up round 1.22%.
On account of this pattern change, two main resistance ranges emerged at $4.87 and $4.04, and a help stage at $2.95. However presently, the value has damaged previous this help stage.
Technical indicators level to a continued downward pattern of optimism
When analyzing OP’s worth Utilizing the candlestick’s day by day time-frame, we will see that the token did not bounce again after falling from its all-time excessive. This has resulted in worth buying and selling beneath each the trendline and the 100-day shifting common, as seen within the picture beneath.
Primarily based on this current pattern change and shift in momentum, optimism could possibly be poised for continued downward motion, particularly within the context of the general crypto market experiencing a decline.
An additional take a look at the value utilizing the MACD indicator within the day by day time-frame reveals that the MACD line and the sign line have crossed and are beneath the zero line. In the meantime, the MACD histogram additionally reveals a pattern beneath the zero line. This MACD formation signifies robust downward momentum.
One final take a look at the Bull energy vs. graph. Bear energy indicator from the day by day time-frame reveals from the histogram that sellers have fully taken over the market. Consequently, consumers have step by step misplaced the momentum to push the value increased.
How low can OP go?
If the value of optimism continues to pattern downward, a worth breakout beneath the earlier help stage of $2.61 may happen. It is also attainable that the value may transfer even additional in the direction of reaching a brand new help stage.
Nonetheless, with the historical past of exponential progress that comes with it ONIf the value fails to interrupt or get beneath the earlier help stage at $2.61, a brand new uptrend may start, pushing the value increased to retest its earlier resistance ranges.
Featured picture from Shutterstock, chart from Tradingview.com
