Optimism (OP)There’s a chance that it may have completed its correction by getting out of a falling wedge pattern. A rise above the $1.42 level is likely to create serious upward momentum in the price. Here are the details of the remarkable technical analysis.
OP price hit an all-time high at $2.24 on August 4. Stuck in the ‘falling wedge’ model after this level, the OP could not show much activity. The price, which fell to $ 0.65 on October 13, managed to get rid of this level and increased the possibility of a rise.
As of October 26, the price of Optimism rose as high as $1.19. As a result, if the upside continues, the main ‘long-term resistance area’ will be marked at $1.42.
To What Level Can Optimism Price Rise?
Daily RSI supports continued OP price increase and technical analysis on daily timeframe remains bullish.
First, the indicator appears to form a bullish divergence (green line) before it breaks. Then, the RSI broke out of the descending resistance line (black) and then rose above 50. Both show signs associated with uptrends and breakout structure.
Koinfinans.com As we reported, Optimism (OP) price is likely to rise up to $1.42 if the technical formation reciprocates.
In addition to similar to the RSI, the ‘wave count’ also gave an optimistic price forecast. The most likely level OP price, completing an ABC corrective structure (red) where the A:C waves have a 1:0.618 ratio. This is the second most likely rate for such corrections.
Then, the break in the wedge confirmed the completion of the correction and the start of a new upward move.
If the increase in price action started on October 23, then the OP price is now approaching the end of the short-term increase (black). As a matter of fact, a possible scenario where the fifth wave ends near the $1.42 horizontal resistance area.
Then, there is also the possibility that a correction period may start before the upward move continues.
On the other hand, a drop below the October 21 low of $0.63 will invalidate the wave count. If that happens, it will be at an all-time low.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.