Optimism (OP) has skilled a market rebound up to now week gaining by 35.76% primarily based on information from CoinMarketCap. The Ethereum layer-2 token hovers above $2.20 with traders strongly bullish on future worth positive aspects. Nonetheless, sure buying and selling indicators sign in any other case.
Optimism Doubtless To Fall By 18%
In a November 23 post on X, famend crypto analyst Ali Martinez shared a bearish prediction on Optimism regardless of the token’s present upward development.
Based on 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 usually used to determine potential worth exhaustion or continuations by analyzing patterns inside worth bars.
After OP’s rally up to now week, the TD sequential now factors to a development exhaustion, suggesting a doable worth reversal. Following this sign improvement, Martinez predicts OP might slide to $2.0. Nonetheless, additional correction might pressure 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. Based on information 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 effectively above its 100-day easy shifting common (SMA) which suggests a doable uptrend continuation. This issue, mixed with the current strong bullish sentiments in the altcoin market suggests OP might keep its present worth rally, reaching as excessive as $2.5 at which lies its subsequent vital market resistance.
Optimism Value Overview
At press time, Optimism exchanges hand at $2.29 following a 1.64% achieve up to now 24 hours. In the meantime, the altcoin’s each 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 positive aspects of 35.76% in seven days as earlier said, and 33.77% up to now 30 days.
Regardless of latest positive aspects, 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. Based on information from Top 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).