- Optimism struggles at $1.90 resistance, with support at $1.50 crucial for stability.
- Technical indicators show neutral momentum, but buying pressure could trigger a reversal.
- On-chain data reveals long-term accumulation, signaling growing interest despite lower transactional activity.
Optimism (OP) recently struggled at a key resistance zone between $1.80 and $1.90. The token failed to break above this level, causing a pullback of over 20%. Currently, OP trades at $1.52 with a market cap of $1.9 billion. The big question is whether OP will hold support at $1.50 or fall further. If support holds, a rebound could set the stage for a surge in the coming months.
Support and Resistance Levels: Key to Short-Term Stability
OP is currently consolidating between $1.50 and $1.60. These levels are crucial for maintaining stability. If OP holds the $1.50 support, the price will likely attempt another breakout toward the $1.90 zone. A successful breakout may push the price to higher targets, possibly around $2.50-$2.60. Investors are watching these levels closely to see if OP can gain enough momentum for the next move.
Technical Indicators and On-Chain Metrics: Mixed Signals, But Positive Signs
Technical indicators show mixed signals. The Relative Strength Index (RSI) stands at 45.38, showing neutral momentum. While the price is slightly bearish, there’s room for a reversal if buying pressure picks up. For a stronger bullish trend, the RSI needs to move above 50.
The MACD histogram shows early signs of bullish divergence, although momentum remains weak. The Chaikin Money Flow (CMF) at 0.05 suggests mild capital inflows, indicating some positive but limited investor activity. On-chain data offers more hope for a rebound. Coinglass shows consistent net outflows, with $1.47 million moved off exchanges on November 15.
This points to long-term accumulation. Additionally, IntoTheBlock reports a 21.03% rise in new addresses over the past week, showing increased interest in OP. However, active addresses have fallen by 27.79%, indicating less trading activity despite new participants.
For now, OP faces a critical test at $1.50 support. If this level holds, a potential breakout could push OP to new highs by January. The combination of technical support and on-chain data suggests that a rebound may be on the horizon.
The post Optimism’s $1.90 Support: A Crucial Test Before Potential ATH in January appeared first on Crypto News Land.
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