- OP token shows rejection from 200 day EMA losing the momentum.
- Bulls are now slipping from the key MA.
Optimism token shows a slide in momentum which shows the price meeting with the 20-day EMA, but bulls are facing a drop in momentum which results in the recent downturn of the token.
If the bearish sensation persists, the OP token may punch the primary support level of $1.600. The sellers will exert much effort into getting the token to bounce from the support mark but setting towards the primary support of $1.500 and below till $1.400 is the vital support area.
When writing, OP token trades at $1.820 with an intraday gain of 6.70% showing buyers are gaining momentum. Moreover, the trading volume shows a massive spike of 34.60%, offering buyers participation.
This price action shows that the bulls are accumulating the token from the support marks, and the relative upside was noted. The immediate hurdle of a 20-day EMA near $1.900 was if cracked, then a sharp bounce would happen, and more bounces would be there.
Daily Charts Shows Bulls Exerting Efforts
On the daily charts, the OP token shows a symmetrical triangle pattern where the price gets a bounce from the lower trendline and exerts a bounce. The token has shown safe hands now, and it looks like bulls are now engulfed in the selling pressure, and the token slowly moved out from the hands of sellers.
Moreover, the buyers are gaining strength, shifting the momentum from sellers to buyers. The recent surge in price now trapped the mighty bears who maintained the short positions on the top marks.
As per the Fib levels, the OP token has maintained support at 38.6% level and showed a rebound, and now it looks like the token has completed the correction phase and is now getting ready for the pullback.
What Technical Indicator says?
On the 4-hour charts, OP token gained above the 50-day EMA and showed their muscles in front of the bears. Moreover, the recent selloff is now cooled by the rage of sellers.
The RSI index shows bullishness on the curve and a positive divergence now placed near the overbought zone but looking for a retracement.
The MACD curve also showed green bars on the histogram and a massive spike in the bulls’ pace of action.
Optimism token is gaining strength from the significant Fib level and above the support mark of $1.800.
Support Levels: $1.600
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