DreamAnalysis | OPUSDT Possibility of Breakout and First Bullish
2024-09-19

📚  Welcome to Your Usual Channel, DreamAnalysis! 

✨ Today, we’ll be taking a look at one of Ethereum’s layer-2 projects, Optimism (OP), and see when we might consider buying during the bull run.

🛠️  About the Optimism (OP) Project  : 
Optimism is a Layer 2 solution for the Ethereum network, designed to improve scalability and reduce transaction costs using Optimistic Rollups. This platform allows developers to deploy decentralized applications (dApps) with higher speed and lower costs, while maintaining the security of the Ethereum main layer.

📊  Weekly Time Frame  :
On the weekly time frame, we can observe that OP hasn't experienced a major bull run yet and doesn't have much historical data. After breaking the downward trendline and pulling back toward the 1.196 support, we saw a drop in bearish volume, and sellers lost strength. For some time, the price has been ranging between the 1.196 support and the 1.957 resistance, without any significant movement.

Enter after breaking the 1.957 resistance.
If you're currently in a loss, you could use DeFi and staking to break even or cash out your coins if the 1.196 support is broken.


💡  Daily Time Frame: 
On the daily time frame, we had a strong downtrend, but during these bearish waves, fewer red candles were recorded, and we didn’t make lower lows compared to the previous waves. This indicates buyers are back in the market.

After breaking the long-term downtrend and touching resistance, the price pulled back and once again headed toward the 1.626 resistance with decent volume. If the resistance is broken, you can even enter for spot buys with a stop-loss around 1.446, due to the higher lows according to Dow Theory.
Volume increase , Break of the RSI resistance at 59.96, which will confirm the strength of the move.

📊  4-Hour Time Frame :
In the 4-hour time frame, we're in a long-term range box, where the buyers seem to have the upper hand. Last time, the price didn’t even drop to the bottom of the range; it bounced back from the middle and moved toward the resistance.

📈  Long Position: 
After the 1.626 breakout, make sure to take a long position and follow the potential bullish trend.

📉  Short Position: 
Currently, we don't have a clear short trigger, unless the resistance breaks fakely, which would be a fake breakout, or if the price drops below 1.395. Right now, opening a short position is quite difficult.


💬 This wraps up today’s analysis. If you found this helpful, feel free to share it with your friends and leave a comment with your thoughts or any other pairs or coins you’d like us to analyze.

📌 These analyses are merely our ideas based on a chart that doesn’t follow strict rules. Technical analysis is an art, and these insights are not financial advice.