Optimism Price Forecast: OP eyes 22% recovery gains
- Optimism price shows two buy signals on the 4-hour chart, hinting at a 10% rally.
- The MRI indicator has already flashed a buy signal, but the momentum indicators are yet to follow suit.
- Invalidation of the bullish theiss for OP will occur on a four-hour candlestick close below $1.08.
Optimism (OP) price is relatively ahead of other altcoins in terms of recovery and could lead the rest of the pack. The bullish outlook can be seen across different momentum indicators.
Also Read: Whales reveal their hand as they accumulate Optimism’s OP token in millions
Optimism price ready to take the leap
Optimism (OP) price retraced to the $1.21 support level after a 38% ascent between June 19 and 21. Due to the massive bullishness, the pullback is likely to serve as an opportunity for sidelined buyers.
Additionally, the Momentum Reversal Indicator (MRI) flashed a green“one buy signal on the four-hour chart, suggesting a potential trend reversal. This technical formation, the buy signal, forecasts a one-to-four up candlesticks for OP.
Furthermore, the Wave Trend indicator is edging close to a bullish crossover in the oversold, which adds to the overall bullish outlook. Therefore, Optimism price could trigger a 10% run-up to the next critical hurdle at $1.34, which is MRI’s State Trend Resistance level.
In a highly bullish case, OP could extend this 10% run-up to 22% by tagging the Risk Line at roughly $1.50.
OP/USDT 4-hour chart
On the other hand, a breakdown of the $1.21 could trigger a correction to $1.08, which is MRI’s State Trend Support level. A breakdown of this barrier will invalidate the bullish thesis for OP by producing lower low. Such a development could skew the odds in the bears’ favor, triggering a correction to the Risk Line at $1.01.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
