As a seasoned researcher with years of experience in the cryptocurrency market, I have learned to always approach predictions with a healthy dose of skepticism and a keen eye for both bullish and bearish indicators. While Optimism’s recent surge is indeed impressive, the analysis by Ali Martinez raises some concerns that should not be ignored.
Over the last seven days, Optimism (OP) has seen a significant surge, rising by approximately 35.76%. According to CoinMarketCap, the Ethereum layer-2 token currently sits above $2.20. Investors appear optimistic about further price increases in the future. Nevertheless, some trading signals suggest a different outlook.
Optimism Likely To Fall By 18%
On November 23rd, well-known cryptocurrency expert Ali Martinez posted a pessimistic outlook for Optimism, even though its token is currently experiencing an uptrend.
Based on Martinez’s analysis, the TD Sequential signal suggests a possible sell opportunity for OP’s 4-hour chart, potentially indicating an upcoming price drop. In trading, the TD Sequential indicator is often employed to detect potential price reversals or continuations by examining patterns within candlesticks.
After a strong run at OP’s recent rally, the TD sequential indicates a potential end to the trend, possibly leading to a price reversal. Based on this signal, analyst Martinez forecasts that OP might dip to $2.0. If the correction continues, the token’s price could drop further to approximately $1.80, signaling a potential 18% decrease from its current market value.
Based on Martinez’s predictions, the Relative Strength Index (RSI) provided by OP supports this view. The RSI, which measures how fast and strongly an asset’s price is moving to help determine if it’s overbought or oversold, currently stands at 65.18 on OP’s 4-hour chart. This decrease from the overbought zone suggests that buying pressure may be lessening, and a possible price adjustment could be coming soon.
Despite being slightly below its 100-day simple moving average, optimism remains significantly high, hinting at a potential prolongation of the uptrend. This, coupled with the robust bullish sentiment currently prevalent in the altcoin market, suggests that OP could continue its price surge, potentially reaching up to $2.5 where it encounters its next notable resistance level.
Optimism Price Overview
Currently, the price of Optimism has switched hands at $2.29 after a 1.64% increase over the last day. Simultaneously, its daily trading volume has decreased by 13.17%, currently standing at approximately $860.51 million. On a longer scale, OP has shown remarkable growth, gaining 35.76% in the past week as mentioned earlier, and 33.77% over the last 30 days.
Although it has made progress, the current price of the Ethereum-layer 2 token still stands 54.65% below its peak value of $4.85. Yet, it continues to be a preferred choice among investors due to its role within the Ethereum network. As per Top 7 ICO data, Optimism ranks third among Ethereum layer-2 networks in terms of Total Value Locked (TVL), with a TVL of $6.46 billion, trailing behind Base ($7.02 billion) and Arbitrum ($14.3 billion).
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2024-11-24 19:16