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OPTIMISM Price Analysis: More Downward Move Expected 

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  • The price of Optimism is trading near $1.094, and The 24-hour trading volume was at $70.373 Million.
  • The Optimism price is observing a decline of -1.26% in the last 24 hours.
  • The Optimism year-to-date return is +19.30%.

OP is a layer-two blockchain on the apex of Ethereum. Optimism leverages the security of the Ethereum mainnet and helps scale the Ethereum ecosystem by using optimistic rollups. That means optimism transactions are trustlessly recorded on Optimism but eventually secured on Ethereum. Optimism is one of the biggest scaling solutions for Ethereum, with over $500 million in TVL. It hosts 97 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, and Velodrome (VELO), an AMM. Users can begin their expedition on Optimism by accumulating the chain on their Metamask and bridging tokens like ETH. Optimism led to a highly awaited airdrop of its OP token. Like Ethereum, Optimism intends to emerge as a fully decentralized public good that is not profit-oriented.

Trend Analysis

Considering trend and price information history, it can be inferred that Optimism is in a downtrend. The price has declined -19.97% within a week and we can say that Optimism is showing poor performance.

Optimism  Trading Downwards

Technical Analysis (1D Timeframe)

Trend Analysis

Source:  Optimism/USD.1D.COINBASE by TradingView

Trend analysis

Source:  Optimism/USD.1D.COINBASE by TradingView

Optimism  Price Analysis

EMA 20 & 50: EMA is a moving average that places more weight on recent price data than a simple moving average (SMA). It reacts quickly to price changes and can help identify trends and reversals. The Optimism price is below the 20 and 50 EMAs, which indicates that the price will decline. If sellers continue to lower the cost, it could drop further in a week.

EMA 100 & 200: The price of Optimism at present is trading below 100  and 200 EMA, which suggests the price could fall short. If the sellers continue pushing the price downwards, it could lose more in value within a week. 

MACD: Based on this chart, we can see that the Optimism coin is in a downtrend as the MACD line is below the signal line, both negative and below the zero line. Therefore, it indicates bearish momentum. The MACD line is at -0.156, and the signal line is at -0.145.

RSI: The RSI line has been declining and approaching the oversold territory or the oversold level of 30 for the past few days. The 14 SMA has a value of 32.40 points, and the RSI line is around 29.78. This indicates that the Optimism market is in the oversold zone. The RSI suggests that the market may be losing steam.

Stoch RSI: The Stochastic RSI fluctuates between 0 to 100. With readings below 20, it is considered oversold, and those above 80 reflect overbought conditions. The current %d line is at 24.21and the %k line is at 23.98. It indicates that Optimism is in an oversold zone.

Supertrend: With the help of just two parameters, period and multiplier, this indicator works fabulously. It shows to buy and sell signals at period value 20 and multiplier value 2. As shown in the chart, it’s bearish.

A possible technical analysis based on these indicators & trendline:

  • Based on these indicators, Optimism has been in a downtrend, making lower highs and lower lows. 
  • The MACD line is below the signal line and zero, indicating bearish momentum. 
  • The RSI indicates bearish pressure and possible oversold conditions. 
  • The price is also below all EMAs, indicating strong resistance. The EMA’s show a bearish trend.

The indicators are all pointing to a bearish scenario for Optimism. However, this doesn’t imply that the price will continue to fall indefinitely. There may be temporary rebounds or reversals along the way, especially if the RSI reaches oversold levels or the MACD crosses above the signal line.

As per the trendline, it seems it’s respecting the trendline and declining from the trendline. It’s been bearish for the past week. For now, we can say it can go downwards more soon. So, the price of Optimism can continue to Fall. 

Conclusion

According to the analysis, the indicators support the bears. If the price continues to move under the Seller’s control, it is expected to fall shortfall more shortly from the current levels. Presently, the sentiments of the investors and & traders are bearish regarding the price of Optimism in the 1D timeframe.

Technical Levels:

  • The Nearest Support Zone  – $0.92, then $0.76
  • The Nearest Resistance Zone – is $1.42, then $1.58

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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