Can Optimism hold above the $1.46 support?

• OP lastly crossed the $1.43 resistance, indicating a possible to maneuver towards $2.
• There may very well be an entry round $1.53 if the price-DAA maintains the identical momentum.

Optimism [OP] lived as much as its identify, gaining 7.65% within the final 24 hours. The leap adopted the rise of most property within the crypto market, led by Bitcoin [BTC]. However earlier than the rise, analyst and investor Crypto Tony, spoke in regards to the potential of OP.

Learn Optimism’s [OP] Worth Prediction 2023-2024

OP flips the goal

In his publish on X (previously Twitter), Tony applauded OP for blasting via a resistance. A better take a look at the charts by AMBCrypto revealed that the resistance being talked about was at $1.43. 

$OP / $USD – Replace

Good push in opposition to the resistance zone right here, i’m seeking to lengthy if we will flip $1.46 into help and keep above pic.twitter.com/6NmJvenAc7

— Crypto Tony (@CryptoTony__) November 4, 2023

The analyst didn’t simply give attention to the resistance. As an alternative, he talked about opening an extended OP place if it flips the $1.46 was the proper factor to do. In fast abstract, an extended in crypto implies {that a} dealer buys an asset whereas anticipating an increase in its value.

If the asset value will increase, the dealer can promote it at a revenue. The alternative of that is quick. So, as an alternative of anticipating a value enhance, merchants revenue when the asset value falls.

Curiously, OP’s value was altering fingers at $1.53 at press time, that means merchants who might have longed for the cryptocurrency would have almost certainly made a revenue.

Equally, there’s a excessive likelihood that there are merchants which have targets far greater than $1.53. Consequently, AMBCrypto believes combining on-chain knowledge and the technical outlook could also be extra helpful than utilizing just one facet to find out the route.

Longs can enter

As such, it was crucial to take a look at the price-Day by day Lively Addresses (DAA) metric. From Santiment’s knowledge, Optimism’s price-DAA divergence has been rising. This can be a signal of a rise within the general utilization of the Optimism community.

Supply: Santiment

Nevertheless, the OP value grew greater than the DAA, indicating a potential entry for merchants seeking to lengthy the token. If the worth had declined and the DAA surged, then it’s an indicator that it’s time to promote or quick the token.

Evaluation from AMBCrypto confirmed that OP has the potential to maneuver in the direction of $2. This assertion was due to the momentum displayed by the Accumulation/Distribution (A/D). At press time, the A/D line was rising.

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The rise signifies that there was sufficient quantity accessible to again the OP value motion. Subsequently, a bullish motion might not be invalidated quickly. The Relative Power Index (RSI) additionally indicators that purchasing momentum was at its peak.

Nevertheless, the RSI at 70.11 meant that OP was overbought at press time. Thus, a downward motion might happen earlier than a pump. Additionally, a retest of $1.43 could also be potential earlier than OP tries to strategy $2.

Supply: TradingView