Optimism (OP) Breaks Key Support, Eyes Steep Drop to $0.215

• Optimism (OP) confirms a Head and Shoulders breakdown, targeting a steep drop to $0.215 amid persistent selling pressure.
• OP’s bearish momentum intensifies as it struggles below the $1.20 neckline, with lower highs and lows reinforcing the downtrend.
• Weak buying support signals extended losses, though a volume surge could challenge the bearish outlook and push OP above resistance.

Optimism (OP) has triggered a bearish breakdown, confirming a Head and Shoulders pattern on its weekly chart as per analyst Ali. The price has dropped significantly after breaching the crucial $1.20 neckline support. With ongoing selling pressure, OP now aims for a potential target near $0.215.

Bearish Breakdown Confirms Head and Shoulders Pattern

The Head and Shoulders pattern is a well-known technical structure that signals a bearish reversal. OP formed the left shoulder in mid-2023 , followed by a rally to its peak, creating the head in early 2024. Later, the price declined, forming the right shoulder before breaking below the neckline at $1.20.

This decisive breakdown confirmed the bearish outlook. After briefly retesting the neckline as resistance, OP continued its downward move. The price currently hovers around $0.86458, reflecting increased selling momentum. Moreover, the pattern’s projected downside aligns with a target near $0.215, based on the head-to-neckline distance.

Selling Pressure Intensifies, Further Losses Expected

The current weekly candle suggests that sellers remain in control. OP has recorded consecutive lower highs and lower lows, reinforcing the bearish trend. Additionally, the volume profile likely supports this bearish move, given the strong rejection at the retest of the neckline.

Besides, the lack of buying pressure signals a continued downtrend . If the price sustains below the neckline, the bearish target of $0.215 may be reached. However, a surge in buying volume could challenge this outlook, potentially pushing the price back above resistance.