- Optimism price's decline is nearing its end game with important support nearby.
- OP to sling-shot higher as RSI treads into an oversold region.
- Expect to see OP trading near $1.90 by July.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.