Optimism price is set to swing to the moon for a 40% return

Optimism (OP) price is sinking this week with a 20% drop since Monday as risk assets in global markets dive. The selling pressure can be felt in nearly every corner for equities, cryptocurrencies like Bitcoin and Ethereum, and altcoins and meme stocks. OP though is showing signs of an end nearby in this technical correction with price action primed for a 40% upbeat move.

Optimism price holds some strong technical cards for that rebound

Optimism price is falling like a rock this week with daily declines of several percent since Monday. OP is not a single case but is rather under the scrutiny of a global risk-off push in global markets where equities and cryptocurrencies are selling off hand in hand. With crypto selling pressure going into its third day, some indicators like the Relative Strength Index (RSI) are too far oversold and hence due for a pullback.

OP is nearing a longer-term green ascending trendline that has already been tested on multiple occasions in the past. Add to that the big figure of $1.30 as a psychological number, and there are two perfect reasons for a rebound. A rebound could quickly go to $1.90 with the pivotal level at $1.46 as the only element in its way of a 40% recovery.

OP/USD daily chart    

A break of that green ascending trendline and the $1.30 level, however, would mean some serious risk of a full implosion in OP. At $1.10, there is still the S3 support level for May, but once through that it becomes a clear road to $0.65. That would mean a new low for 2023 and  a near 60% decline for this week.