Home / Analysis / Crypto / Technical Analysis / Optimism (OP) Breaks Resistance Zone With 36% Spike in a Single Day

Optimism (OP) Breaks Resistance Zone With 36% Spike in a Single Day

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • OP surpassed $2.00, confirming bullish momentum.
  • $1.20 acted as a strong support during consolidation.
  • Room for continued upside with RSI below overbought levels.

Optimism (OP) has broken out of its prolonged bearish trend after reaching a yearly low of $1 in August.

The Nov. 20 breakout above the $1.90-$2.10 resistance zone signals a potential bullish phase, supported by rising momentum and the ascending triangle pattern validation.

OP Price Analysis

After reaching its yearly high of nearly $5 in March, the price of OP entered a prolonged bearish phase, returning to $1 in August.

The daily chart shows a significant breakout from the $1.90-$2.10 resistance zone that occurred on Nov. 20, which aligns with the end of a multi-month corrective phase.

This 36% move suggests that OP could now enter an impulsive wave to retest prior highs.

OP price analysis
OPUSD broke horizontal resistance | Credit: Nikola Lazic/TradingView 

The ascending triangle formed on Aug. 5 and over recent months has validated its bullish potential, and the breakout is supported by increased buying pressure.

If OP sustains above $2.00, it could aim for $2.50 or higher in the next leg of its upward trend. Conversely, retesting the $2.00 breakout level for support would confirm the uptrend’s strength.

Key Observations

  1. Breakout Above Resistance: Optimism (OP) broke above the $2.00 resistance zone, marking a potential trend reversal after consolidating within a WXY corrective structure. This breakout is a strong signal of renewed bullish momentum.
  2. Accumulation Phase Base: The $1.20 support level was a strong accumulation zone during the prolonged consolidation phase. This zone provided the foundation for the recent rally.
  3. Bullish RSI Momentum: The Relative Strength Index (RSI) is trending upward but remains below overbought levels, suggesting room for continued upside before a potential correction.

OP Price Prediction

The hourly chart indicates that OP has successfully broken out of its consolidation phase, confirming a higher-degree wave 3 in its impulsive structure.

Following the recent corrective wave 2 bottoms at $1.30 on Nov. 4, the price surged to $2.10, breaching the critical resistance. 

OP price prediction
OPUSD more upside needed to validate bullish outlook | Credit: Nikola Lazic/TradingView 

This rally aligns with strong momentum, as reflected in the RSI, which remains elevated but not overbought. This indicates room for further upside as wave 3 of a lower degree continues. 

The breakout confirms bullish sentiment, with the price moving toward the projected Fibonacci targets. The 1.272 Fibonacci extension at $2.45 and the 1.618 level at $2.76 are likely short-term targets, with wave (v) potentially extending beyond $3.00.

However, the price may retrace to retest the $2.00 zone before continuing higher.

Key Levels to Watch

Support Levels:

  • $2.00: Key breakout level, acting as strong support during a retest.
  • $1.86: 0.618 Fibonacci retracement, critical for maintaining bullish momentum.
  • $1.30: Recent low and wave (ii) support.

Resistance Levels:

  • $2.45: 1.272 Fibonacci extension, the first target for wave (iii).
  • $2.76: 1.618 Fibonacci extension, strong mid-term resistance.
  • $3.10: Wave (v) projection, aligned with the 2.0 Fibonacci extension.
  • $3.65: 2.618 Fibonacci extension, the potential peak for the current impulsive wave.

The continuation of the uptrend depends on holding above $2.00.

A retest and successful bounce from this level would confirm the next leg higher, while a breakdown below $1.86 may signal the start of wave (iv) correction.

 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Was this Article helpful? Yes No