Optimism (OP) Plummets: Could a Trend Reversal Be Coming?

• Optimism (OP) continues to struggle, showing a 46.65% decline over the last month.
• Analyst suggest a head-and-shoulder pattern, indicating a potential for further price drop.
• Key support at $1.05–$1.10, resistance at $1.70–$1.90, with bearish market pressure.

Optimism (OP) has declined in the market in the last month and has significantly depreciated. The cryptocurrency has dropped 46.65% in the previous calendar month for 30 days. The token has been on the decline and is, at this time, 23.31% down compared to the last week. These bearish market trends have greatly affected the overall market, and optimism is among them.

As of press time, the price of OP is $1.12, which is 7.90% below the record high of $4.85 recorded in March 2024. This has raised many investors’ concern about the token market’s future value. 

Source: TradingView

Head-and-Shoulders Pattern Forming

In a post on Wednesday, analyst Ali Martinez suggested the likelihood of creating a head-and-shoulder pattern on the price chart. It indicates a trend reversal and is marked by a larger upward movement known as the head followed by two other moderate upward movements referred to as the shoulders. Martinez mentions that if this pattern occurs, the future price may decrease in terms of the slope alteration direction from positive to negative.

overall trend of bearishness with occasional minor bounces. The platform shows that the 200-period exponential moving average of the price is inclined downward, indicating long-term bearishness.

Source: cexscan

Related: Ripple’s XRP Ledger Recovers After Unexpected Network Halt

Support and Resistance Levels

Possible key support for OP has been noted at around 1.050 to 1.100, while the resistance levels have been reported at 1.700 to 1.900. Even if bullish candle formations exist, such as the bullish engulfing or hammer, the bearish signals have quickly emerged. 

Optimism (OP) forecasts to trade neutral to bearish for the short term. Although occasional bullish signals are seen, the prevailing market sentiments and technical analyses suggest further downside potential. Investors are encouraged to pay close attention to support and resistance levels because the current market is in a bearish trend.ort and resistance levels because the current market is in a bearish trend.

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