Optimism [OP]: Is a 7.1% pump enough for a sustained rally
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- OP rebounded from the critical support level with a 7.1% pump
- Buyers looked to maximize the hike in the short-term with a significant share of the long/short ratio
Optimism [OP] bounced off the $1.16-support level after registering 7.1% gains over the last 24 hours. This halted the steep price rejection from the $1.41 resistance level, as buyers looked to reverse recent losses.
Read Optimism’s [OP] Price Prediction 2023-24
With Bitcoin [BTC] trading above $29.5k, OP buyers can take advantage to register more gains in the short term.
Bulls retained vital buying pressure at critical support level
A look south revealed the bullish strength at the $1.16 support level. Earlier in July, bulls had rallied strongly from the support level to a Q3 high of $1.8. Thus, the price rebound off this level could see another strong bullish rally.
However, bulls will have to contend with two near-term obstacles. If buyers can cross the bearish low hurdle at $1.3, more gains can be achieved by flipping the $1.41 resistance level to support.
Meanwhile, the RSI (Relative Strength Index) highlighted growing buying pressure by moving above the neutral level with a reading of 56. Also, the OBV (On Balance Volume) displayed steady trading volume which could aid the bullish momentum.
Buyers dominated the exchange long/short ratio
Data from Coinglass highlighted that buyers were in the majority in the short term. The exchange long/short ratio on the one-hour timeframe revealed buyers held a 57% share of the open contracts.
How much are 1,10,100 OPs worth today?
This suggested a heavy bullish bias for additional short-term gains on Optimism. Thus, a price surge above $1.3 could strengthen the bullish conviction and result in a sustained bullish rally.