Connect with us
Active Currencies 14553
Market Cap $2,671,872,020,038.83
Bitcoin Share 49.77%
24h Market Cap Change $-0.42

Can Optimism hold above the $1.46 support?

2min Read

OP’s price grew more than the DAA, indicating a possible entry for traders looking to long the token. But what are the reasonable targets?

Can Optimism hold above the $1.46 support?

Share this article

  • OP finally crossed the $1.43 resistance, indicating a potential to move toward $2.
  • There could be an entry around $1.53 if the price-DAA maintains the same momentum.

Optimism [OP] lived up to its name, gaining 7.65% in the last 24 hours. The jump followed the rise of most assets in the crypto market, led by Bitcoin [BTC]. But before the rise, analyst and investor Crypto Tony, spoke about the potential of OP.


Read Optimism’s [OP] Price Prediction 2023-2024


OP flips the target

In his post on X (formerly Twitter), Tony applauded OP for blasting through a resistance. A closer look at the charts by AMBCrypto revealed that the resistance being talked about was at $1.43. 

The analyst did not just focus on the resistance. Instead, he mentioned opening a long OP position if it flips the $1.46 was the right thing to do. In quick summary, a long in crypto implies that a trader buys an asset while expecting a rise in its price.

If the asset price increases, the trader can sell it at a profit. The opposite of this is short. So, instead of anticipating a price increase, traders profit when the asset price falls.

Interestingly, OP’s price was changing hands at $1.53 at press time, meaning traders who may have longed for the cryptocurrency would have most likely made a profit.

Similarly, there is a high chance that there are traders that have targets far higher than $1.53. Consequently, AMBCrypto believes combining on-chain data and the technical outlook may be more beneficial than using only one aspect to determine the direction.

Longs can enter

As such, it was necessary to check out the price-Daily Active Addresses (DAA) metric. From Santiment’s data, Optimism’s price-DAA divergence has been increasing. This is a sign of an increase in the overall usage of the Optimism network.

Optimism price and daily active addresses

Source: Santiment

However, the OP price grew more than the DAA, indicating a possible entry for traders looking to long the token. If the price had declined and the DAA surged, then it is an indicator that it is time to sell or short the token.

Analysis from AMBCrypto showed that OP has the potential to move towards $2. This assertion was because of the momentum displayed by the Accumulation/Distribution (A/D). At press time, the A/D line was increasing.


Is your portfolio green? Check out the OP Profit Calculator


The increase indicates that there was enough volume available to back the OP price action. Therefore, a bullish movement may not be invalidated soon. The Relative Strength Index (RSI) also signals that buying momentum was at its peak.

However, the RSI at 70.11 meant that OP was overbought at press time. Thus, a downward movement may occur before a pump. Also, a retest of $1.43 may be possible before OP tries to approach $2.

Optimism [OP] price action and analysis on a 4-hour timeframe

Source: TradingView

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.