Optimism (OP) Cracks Double-digit Gains, Can Bulls Breach $1 Mark?

• OP’s price shows the first sign of bounce after seeing its price bottom at the $0.6 support zone. 
• OP bounced off its downtrend movement as price eyes a break from its downtrend to a region of $1. 
• The price of OP breaks out of its daily downtrend, acting as a resistance line as the price trades below the 50 Exponential Moving Average (EMA).

Despite many traders and investors expecting the month of October to be fruitful for most crypto, including Optimism (OP), the price of Optimism (OP) has had a difficult start. In recent weeks, the price of OP has failed to replicate the rally from a low of $0.5 to a high of $2. The crypto market, including the big players like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), has had a quiet month as the prices of most altcoins have found themselves fighting for survival as they seek to defend their key support areas. (Data from Binance)

Optimism has struggled to regain its bullish momentum in recent times; despite the uncertainty that has befallen the crypto space, the price of OP hasn’t enjoyed a measure of relief after showing so much strength on the weekly chart rallying from a low of $0.5 to a high of $2.4 with many becoming interested as to what OP will accomplish. 

After the price of OP rallied to a high of $2.4 with what is its all-time high, the price has faced so much downtrend as the price dropped to a weekly low of $0.6; the price rallied from this low to a high of $0.7, where the price faced resistance to breaking above this region.

The price of OP bounced from its low after facing several rejections to trend; with the week looking more interesting for most crypto projects like OP, we could see a rally to a high of $0.9-$1. 

OP’s price needs to maintain this structure as the price heads into the monthly close; if OP continues, we could see a price trend toward $1.

Weekly resistance for the price of OP – $1.

Weekly Support for the price of OP – $0.6.

In the daily timeframe, the price of OP continues to trade below the key resistance formed at 50 EMA after breaking out of its descending triangle. The price of $0.9 acts as the resistance holding the price of OP from trending higher, which corresponds to the value of the 50 EMA.

The price of OP needs to break and hold above $0.9 for the price to trend higher to a region of $1, which is a key supply zone for most traders. If the OP price fails to break above this region, we could see the price retest its Support at $0.65.

Daily resistance for the OP price – $0.9-$1.

Daily Support for the OP price – $0.65.