Optimism moves toward a key hurdle — Will OP sellers benefit?
Optimism's recovery faced a crucial hurdle above $1.250 and could attract sellers.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- OP’s pullback steadied at around $1.18.
- Sellers had the upper hand despite the positive funding rates.
Optimism [OP] struggled to cross above $1.45 since September. It plunged even further in October as sellers exploited the bearish pressure but steadied near $1.18 at press time.
Read Optimism [OP] Price Prediction 2023-24
Meanwhile, Bitcoin [BTC] fronted a surprise upswing from Sunday (16 October) and recovered most of the recent losses. OP took a cue from BTC and registered a bounce but faced an overhead roadblock above $1.25.
Will sellers exploit the overhead hurdle?
At press time, OP’s higher timeframe market structure bias was bearish. Price action was below the recent lower high of $1.21. Interestingly, the lower high coincided with an H12 bearish order block OB of $1.26 – $1.285 (white).
The other two critical hurdles above the immediate resistance are $1.349 and a daily breaker block of $1.40 – $1.46 (red).
The bearish market structure bias could make sellers exploit the immediate hurdle of $1.26 – $1.285 (white). If so, OP sellers could benefit from a 5% shorting gain if the price retests $1.18.
A move beyond the overhead obstacle will be an invalidation of the above bullish bias.
Meanwhile, there was mild buying pressure, as indicated by the uptick in the Relative Strength Index (RSI) at press time. But capital inflows into the Layer-2 native token declined in October, as shown by the southward movement of the Chaikin Money Flow (CMF).
Optimism sellers maintained market control
How much are 1,10,100 OPs worth today?
Since 8 October, demand for OP in the Futures market has declined and underscored a negative sentiment, as demonstrated by dropping Open Interest (OI) rates.
The weakening Futures market demand tipped sellers to gain more market leverage over the same period, as illustrated by the downsloping Cumulative Volume Delta (CVD).
However, the Funding Rates were positive in the past few hours, denoting market sentiment improved at press time. The bearish bias will be invalidated if price action surges above $1.288 and flips the higher timeframe’s market structure to bullish.
