Coin Of The Week – Optimism (OP)

In the past few weeks, optimism has been among the top-performing altcoins.

The Optimism Rollup Network is just one solution to the Ethereum scaling problem.

Related reading: Can Ethereum go higher than the Merge?

OP continues to demonstrate a strong bullish trend, and is a great crypto coin to hold for the bull run.

Daily Chart Analysis of Optimism, (OP)

From the $0.45 low, Optimism (OP), began its bullish trend. However, after breaking away from the channel resistance at $0.58, it maintained an upward trend over the last weeks. The price reached $1.96, a more than 30% increase.

Daily low – $0.45

Daily high – $1.96

Daily supports – $1.34, $0.93, $0.45

OP 1D Chart with Support Levels For The Daily Timeframe. Source:| Source: OPUSDT On

The daily chart shows OP with a strong uptrend in the last few days. 

Although the structure of bullish trends is intact, it is accompanied by a lower volume that suggests we may be approaching the end of this bullish trend.

Support for OP 1D charts was already indicated as allowing possible accumulation of Dollar Cost Averaging (DCA). 

Dollar Cost Averaging allows for the purchase of crypto assets by using money that is divided over time. This strategy can also be used to buy assets on market level as they reverse.

OP traded at $1.567, and it could rise to $1.34 as the closest support for accumulation.

This support coincides with the Fibonacci Retracement at 61.8%. A healthy pullback is good for crypto assets who must continue a bullish uptrend.

 OP might have trouble breaking the $2.2 All Time High (ATH), but should it be broken, OP will continue in an upward trend.

Major support – $1.54, $0.93, $0.60, $0.45

Major resistance – $2.1

OP on the 4H Chart

On the 4H chart, OP shows a bearish divergence sign – meaning we could be coming to the end of the bullish trend that has lasted for several days. 

Source: OPUSDT On| Source: OPUSDT On

OP currently tries to break below ascending wedge in the 1H timeframe. A break or close below would indicate a fall to the next support. 

Source: OPUSDT| Source: OPUSDT

OPs above $1.1 indicate that bullish structures are still in place, however, a break from the bottom of the range would cause the structure to be invalidated.

Major supports on 4H – $1.1, $0.9

Major resistance on 4H – $2.1

OP generally looks well in bear markets and bull runs; it’s one of those assets that has a great use case and a large community.

Read Related Reading: T: Bitcoin price struggles below $25k, signs of a Double Top emerges

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