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Optimism’s range extends — Can late OP sellers exploit it?

2min Read

Optimism [OP] could rebound to the range-high if bulls defend the range-low. Sellers could take over again if BTC remains muted.

Optimism price analysis
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • Sellers pushed OP lower, but bulls could defend the range-low of $1.302
  • Liquidity existed at $1.302 and $1.357 and could see a strong price reaction 

Optimism [OP] was stuck in a narrow price range formation of $1.30 – $1.35 in the first week of September. The range could extend further as Bitcoin [BTC] remained muted in its range-lows of $25.7k as of press time. 


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Another price reversal, especially at the range-low of $1.3, was likely amidst massive accumulation by whales who took advantage of the discounted prices. 

Will sellers benefit from the range-high again?

Optimism price analysis

Source: OP/USDT on TradingView

In the first week of September, OP oscillated between $1.3 and $1.35. At press time, the 50-EMA (Exponential Moving Average) edged lower to the range-high. It could make the level more challenging for bulls to bypass, especially if BTC’s weakening persists in the short term. 

Ergo, another price rejection at the range could be imminent, and a shorting opportunity could occur. A short entry position at $1.34 with a take-profit at the range-low ($1.30) could offer a 2.8% profit if such a rejection at the range-high happens. 

However, a candlestick session close above the range-high near $1.35 will invalidate the short set-up. But such a move could falter at $1.36 or the H4 bearish order block (OB) of $1.37 – $1.38 (red). 

Meanwhile, the Relative Strength Index (RSI) wavered within the low ranges in the first week of September, underscoring the wavering buying pressure. The Chaikin Money Flow (CMF) also struggled to cross above zero, reinforcing muted capital inflows.

Open Interest rates stagnated

Optimism price analysis

Source: Coinglass


Read Optimism’s [OP] Price Prediction 2023-24


According to Coinglass, Open Interest declined since August but stagnated in the first week of September. This demonstrated that the demand for OP in the derivatives segment declined in August but stagnated in September. It underscores a neutral sentiment.  

A look at the Binance liquidation map from Coinglass revealed key OP liquidity levels existed at $1.357 and $1.303. It meant there could be a strong reaction to the upside after collecting the liquidity at $1.303, which aligned with the range-low.

On the other hand, another price reversal could be likely at $1.357, near 50-EMA. So, the two levels could act as a great take-profit and exit levels. 

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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