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As Optimism derails at $1.6, what’s next?

Press Releases Crypto News AMB-Crypto As Optimism derails at $1.6, what’s next?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Optimism hit a crucial resistance near $1.6.
Weighted sentiment improved while volume declined.

Optimism [OP] bulls could face a tricky balancing act moving forward, as they hit a crucial $1.6 hurdle. The altcoin has been range-bound between $1.4 and $1.6 since 14 July. But on 19 July, it inflicted a +15% rally, jumping from the range-low to $1.63.

Is your portfolio green? Check out the OP Profit Calculator

However, OP faced price rejection at a range-high, doubling as a crucial resistance level that could derail further upside.

In addition, most Fed watchers are inclined towards a likely 0.25% rate hike during next week’s FOMC meeting (25/26 July). So, Optimism could face more difficulty cracking the $1.6 resistance and defending the range lows if a hawkish stance prevails.

Will sellers exploit the obstacle?

Source: OP/USDT on TradingView

The $1.59 level was a key support in mid-January and May. But there has been critical resistance recently, setting OP to consolidate below it in the past five days. Above $1.59 lays another hurdle, a bearish order block (OB) of $1.63 – $1.88 (red) on the daily chart.

As a result, OP could edge lower, especially if BTC fails to cross its mid-range level of $30.5k and the Fed takes a hawkish stance during next week’s meeting. A breach below the range-low of $1.4 will flip the H4 structure bearish.

Bulls can thus consider a range-low of $1.4 for bids. The range lows also align with the H12 bullish order block of $1.4 – $1.5 (cyan) and could make the area a bullish str

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Author: Benjamin Njiri

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