Key Takeaways
Optimism (OP) is currently in a corrective phase, testing key support levels that could determine its next major move.
The daily charts suggest the asset is near the completion of a wave (c) decline, while the 1-hour chart highlights potential short-term movements before a breakout attempt.
OP Price Analysis
The daily chart shows OP in a prolonged corrective phase, forming an ABC structure. The price is currently testing the 0.5 Fibonacci retracement at $0.79, with the next key support at $0.34 (0.618 Fibonacci level).
Historically, OP has rebounded from this zone around $1, making it a critical area to watch for a potential reversal.
However, its recent decline was a breakout below the demand zone and will likely continue to the downside.
A descending trendline from previous highs remains a major resistance, positioned around $1.23. If OP breaks above this level, it would confirm a shift toward a bullish structure.
The RSI is near oversold conditions, reinforcing the likelihood of a bottom formation.
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On the 4-hour chart, wave (c) appears to be nearing completion. A strong bullish reaction from the current range ($0.79–$0.86) would signal the start of a recovery, with the first key upside target around $1.23.
If the price fails to hold this support, the next downside target is $0.34, though this scenario remains less probable.
OP Price Prediction
The 1-hour chart suggests OP is in the final stages of wave (c), with a possible last decline before a reversal.
Fibonacci levels highlight $0.79 as a strong support zone where buyers may step in.
A bounce from this level could lead to an initial rally toward $1.00, with confirmation above $1.23 signaling a larger breakout.
If OP holds above $0.79 and gains momentum, an extended wave (i) could push it toward $1.80, aligning with the 0.236 Fibonacci retracement from previous highs.
Further bullish continuation could see OP targeting $2.70 in the coming weeks if overall market conditions improve.
However, failure to sustain the $0.79–$0.86 range could trigger further downside. If OP breaks below $0.79, a deeper correction toward $0.34 may occur before any bullish trend resumes.
The RSI should be monitored, as a move above 50 would confirm a shift in momentum.
A successful rebound would validate a bullish reversal, with OP eyeing a strong breakout above $1.23 as a key confirmation level.
Key Levels to Watch
- Immediate Resistance: $1.00 (psychological level).
- Key Resistance: $1.23 (descending trendline).
- Short-Term Target for Wave (i): $1.80 (0.236 Fibonacci extension).
- Immediate Support: $0.79 (0.5 Fibonacci retracement).
- Critical Support: $0.34 (0.618 Fibonacci retracement).
- Invalidation Zone: Below $0.34, signaling extended downside risk.
If OP holds support and rebounds, a breakout above $1.23 could confirm a bullish reversal, targeting higher resistance levels in the coming months.
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.
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