Optimism (OP) Price Increase Reaches Pivotal Level – Can it Climb Above $2?

23.11.2023

The Optimism (OP) price has increased since breaking out from a 260-day descending resistance trend line in October.

The upward movement took OP to a key horizontal resistance area. Will the price break out?

Optimism Gradually Approaches $2

The OP price had decreased under a descending resistance trend line since its all-time high price of $3.30 in February. The downward movement led to a low of $0.90 in June. Afterward, the altcoin bounced and created a higher low in October.

After four unsuccessful breakout attempts, OP finally broke out from the trend line in October. At the time, the trend line had been in place for 260 days. The OP price increase culminated with a high of $1.93 last week.

Despite the increase, OP did not break out from a key horizontal resistance area, which has intermittently acted as both support and resistance since June 2022.

OP/USDT Weekly Chart. Source: TradingView

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The RSI is increasing and above 50, both positive signs.

What Are Analysts Saying?

Cryptocurrency traders and analysts on X have a mixed view of the future OP price trend.

Cryptocurrency trader CryptoPoseidonn has a bearish view of OP. This is because he believes the short-term market structure has been broken. He stated that:

Market structure has broken, this can be liquidity sweep and run it back turbo or will mark the local top and go for deeper levels. As you can see i bet this is local top and price shouldn’t break 1.8s to keep a bearish market structure.

OP/USDT Four-Hour Chart. Source: X

However, Caleb Franzen stated that the trend can be bullish if the price breaks out from the confluence of resistance levels at $1.90. He believes that a breakout will occur soon.

OP Price Prediction: Can Price Move Above $2?

A closer look at the technical analysis of the daily timeframe shows the importance of the $1.90 horizontal resistance area.

Besides being a critical horizontal resistance area, the area coincides with the resistance line of an ascending parallel channel. The channel has been in place since June.

Even though there is strong resistance at $1.90, the daily RSI supports continuing the OP price increase. The indicator bounced at 50, confirming a hidden bullish divergence (green). This is a sign that often leads to trend continuation.

If OP breaks out, it can increase by 70% and reach the $3.10 all-time high resistance.