Optimism hits key demand zone: Should bulls be hopeful?
Journalist
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Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
- Optimism hit a vital demand zone and bullish order block of $1.19 – $1.27.
- Demand and funding charges improved, however bulls had no edge at press time.
Optimism [OP] has retraced to a key demand zone, however bulls shouldn’t be too hopeful. OP has defended the $1.2 worth thrice since mid-July. The latest reversal from $1.4 has hit the demand zone above $1.2 and will tempt bulls to go lengthy, particularly in a decrease timeframe.
How a lot are 1,10,100 OPs value in the present day?
However Bitcoin [BTC] has eased close to $26.4k and will go both to the range-low or reclaim $27k. So, BTC’s dilemma might put OP gamers on edge, however listed here are key ranges to contemplate.
Will consumers see a reprieve?
Supply: OP/USDT on TradingView
OP consolidated briefly above $1.349 earlier than retreating to the demand zone and day by day bullish order block (OB) of $1.19 – $1.27 (cyan). The reversal was attributable to BTC dropping under the $27k stage.
The demand zone has confirmed regular thrice, main to cost rebounds. At press time, the latest retracement had eased on the zone, and bulls had been out to defend it, as proven by inexperienced candlesticks.
However a value reversal to the upside may very well be delayed until BTC reclaims $27k. If that’s the case, the important thing resistance ranges for consumers are $1.35 and $1.40.
However a crack of the demand zone ($1.19 – $1.27), cyan, might weaken OP additional. The following assist will likely be $1.1 and $1.0.
Spot market demand and shopping for stress improved barely, as proven by the uptick in OBV and RSI. Even so, the CMF labored across the equilibrium, indicating there weren’t substantial capital inflows into the OP market prior to now few days.
Open Curiosity and funding charges improved, however…
Supply: Coinalyze
The Open Curiosity (OI) charges recorded improved from 17 September, together with opened contracts to take quick positions, as OP retreated from $1.4 in the direction of the $1.2 demand zone.
Learn Optimism [OP] Value Prediction 2023-24
The prolonged OI enchancment after hitting the demand zone might counsel a doable reversal and bullish inclination. The constructive funding charges might additional gas bulls’ hope.
However the flat CVD (Cumulative Quantity Delta) requires warning, as neither sellers nor consumers had a market edge at press time.
