Optimism (OP) has skilled a market rebound prior to now week gaining by 35.76% primarily based on knowledge from CoinMarketCap. The Ethereum layer-2 token hovers above $2.20 with buyers strongly bullish on future worth features. Nonetheless, sure buying and selling indicators sign in any other case.
Optimism Doubtless To Fall By 18%
In a November 23 publish on X, famend crypto analyst Ali Martinez shared a bearish prediction on Optimism regardless of the token’s present upward development.
In accordance with Martinez, the TD Sequential has flashed a promote sign on OP’s 4-hour buying and selling chart, presenting the potential for an imminent worth dip. In buying and selling markets, the Tom Demark (TD) Sequential indicator is often used to determine potential worth exhaustion or continuations by analyzing patterns inside worth bars.
After OP’s rally prior to now week, the TD sequential now factors to a development exhaustion, suggesting a attainable worth reversal. Following this sign improvement, Martinez predicts OP might slide to $2.0. Nonetheless, additional correction might drive the token’s worth to round $1.80 indicating a possible 18% decline from the present market worth.
Martinez’s worth projection is additional backed by OP’s Relative Energy Index, an indicator that measures the pace and magnitude of an asset’s worth motion to find out whether it is overbought or oversold. In accordance with knowledge from OP’s 4-hour buying and selling chart, the token’s RSI valued at 65.18 and descending from the overbought zone signifies shopping for strain is weakening and a possible worth correction is imminent.
Nonetheless, Optimism stays properly above its 100-day easy shifting common (SMA) which suggests a attainable uptrend continuation. This issue, mixed with the current robust bullish sentiments within the altcoin market suggests OP could preserve its present worth rally, reaching as excessive as $2.5 at which lies its subsequent important market resistance.
Optimism Worth Overview
At press time, Optimism exchanges hand at $2.29 following a 1.64% achieve prior to now 24 hours. In the meantime, the altcoin’s day by day buying and selling quantity is down by 13.17% and valued at $860.51 million. On bigger time frames, OP is considerably spectacular notching features of 35.76% in seven days as earlier acknowledged, and 33.77% prior to now 30 days.
Regardless of latest features, the Ethereum-layer 2 token stays 54.65% away from its all-time excessive of $4.85. Nonetheless, OP stays an investor favourite contemplating its standing within the Ethereum ecosystem. In accordance with knowledge from Prime 7 ICO, Optimism is the Ethereum layer-2 community with the third largest complete worth locked (TVL) valued at $6.46 billion falling behind Base ($7.02 billion) and Arbitrum ($14.3 billion).
