Optimism (OP) has created a graphic formation that gives a strong signal of a strong decline. According to a popular analyst, if the ‘shoulder head shoulder’ formation is completed, the OP price may quickly decrease to $ 1. While the uncertainty in the market continues, investors are focused on critical levels.
Dangerous Formation for Optimism: head and shoulders!
Crypto analyst Ali Martinez said that OP has created a dangerous formation in the USDT parity in Binance. This formation is the ‘shoulder head shoulder’ pattern that points to the beginning of the fall trend.
In this model, the left shoulder was formed by OP’s first rising and then withdrawal. The head area was completed with the price of 1.20 dollars and harshly falling. The right shoulder came with a weaker recovery and the formation was completed.
Can Optimism drop to $ 1?
According to technical analysis, the critical support level for OP is in the range of $ 1.05-1.07. If the price falls below this level, sales pressure may increase. Since the target of the formation is equal to the distance between the head and the neckline, the OP may decrease to $ 0.95-1.00.
However, if the OP finds strong buyers at this level, there is a possibility that the formation will deteriorate. Investors should follow carefully if the price can stay above $ 1.07. If the OP cannot maintain this level, there may be a harsh decline.
Latest situation for OP price!
The OP is currently traded for $ 1.11 and has gained 1.43 %in the last 24 hours. However, it decreased by 22.48 %on a weekly basis and 47.80 %on a monthly basis. Price movements show that sales pressure on the market is still strong. However, OP also has a signal of recovery. In the daily graph, the purchase volume began to increase. This shows that investors who purchase from the bottom levels are returned to the market. However, the MACD indicator is still signaling a decline.
As long as the Blue Macd line remains below the red signal line, bears can hold control. Optimism investors should pay attention to critical support levels in the coming days. If the OP price falls below $ 1.05, a larger wave of sales may begin. However, if buyers come into play, we can see an unexpected rise.
