OP Technical Analysis
Looking at the Optimism chart on a daily timeframe, it is clearly seen that the short-term falling wedge formation has been broken upwards, suggesting that the price could gradually go up towards the target of this wedge formation. Though the technical target of this formation seems to be the level of $2.70, we must add that there are some strong resistance zones the price must break before reaching the target just mentioned.
OP is currently trading around the zone of $0.84–$0.91, which stands as a key resistance area in the short term. If the price can break this resistance level with great momentum, the next resistance levels to follow are $1.12, $1.39, and $1.50 respectively.
Intersecting not only the horizontal resistance but also the long-term falling trendline, the range between $1.40–$1.50 is technically extremely critical. Unless this critical zone gets broken, this rise could remain limited. On the other hand, if it is broken above, then the price could test $1.89 and $2.77 levels in the mid term.
Summary:
- Falling wedge formation has been broken above in the short term.
- The target of this breakout is technically around $2.70
- Current resistance level: $0.84–$0.91
- The next resistance levels: $1.12 → $1.39–$1.50
- Closing above $1.50 suggests that both horizontal and long-term downtrend have been broken upwards.Mid-term potential targets: $1.89 → $2.77
- In case of a pullback: $0.66 is the first support to follow.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
