Optimism (OP) Bulls Sets Sights On $1.8, Is the Downtrend Doomed?
2024-08-23

Optimism current price action has caught the market’s attention as bullish momentum builds, driving the price toward the pivotal $1.8 level. This upward drive could mark a potential turning point, challenging the prevailing downtrend that has kept the bulls in check for weeks. As buyers regain control, speculations are, is the once-dominant bearish trend on the verge of collapse, or will resistance at $1.8 hold firm? 
This analysis explores the recent positive momentum propelling Optimism toward the crucial $1.8 resistance level and assesses whether this push can halt the ongoing downtrend. It will also provide insights into potential outcomes and conclude with an outlook on whether the bulls can maintain their strength or if the bears are poised to regain control by examining technical indicators and key price levels.
In the last 24 hours, OP has gained a 5.32% increase, reaching approximately $1.44. The crypto asset market capitalization has surpassed $1.7 billion, with trading volume exceeding $135 million. Over this period, the market cap has increased by 5.40%, while trading volume has surged by 11.78%.
Assessing Optimism’s Bullish Momentum Toward Key $1.8 Resistance
Optimism’s price is currently bullish, trading above the 100-day Simple Moving Average (SMA) on the 4-hour chart. If the bulls sustain their strength above this key indicator, it could drive the cryptocurrency toward further gains, aiming for the $1.8 resistance level.
Also, the Relative Strength Index (RSI) indicates that Optimism could continue its surge toward the $1.8 resistance level. The signal line has risen above 50% and is trending around 69%, suggesting that upbeat pressure remains strong in the market.
On the daily chart, OP’s price is demonstrating stability following a successful rejection at the $1.4 mark. This steadiness suggests that the bullish momentum may persist, potentially enabling the price to rise further toward the $1.8 resistance level and the 100-day SMA. If the bulls continue to exert their influence, it could set the stage for more gains and reinforce the upward trend.
Finally, the 1-day RSI indicates that bullish momentum for Optimism is building up, with the signal line currently around 50.81% after surpassing the 50% mark, indicating a potential for additional upward movement for the asset.
Momentum And Market Moves: What’s Next For Optimism As It Eyes $1.8?
Should the current propitious pressure continue and drive OP’s price above the $1.8 level, it could signal the beginning of a bullish rally. The breakout might propel the asset toward the next resistance at $3 and potentially higher levels.
However, if Optimism rebounds from the $1.8 level, it might retrace to its previous low of $1. A break below this level could indicate further downside momentum, potentially leading the cryptocurrency toward the $0.4 range and other lower levels.