Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Selling pressure took OP to critical support level.
- Negative funding rate could aid bears in the short term.
Selling pressure on Optimism [OP] could see bears flip the $1.165 support level to resistance in the short term. The rejection of the bullish rally at the $1.419 resistance level on 2 October ushered in a wave of sustained bearish momentum that has seen Optimism drop by 18.9% between 2 October and 13 October.
Read Optimism’s [OP] Price Prediction 2023-24
With Bitcoin [BTC] trading at sub-$27k prices, sellers could take advantage to break the bullish defense at the key support level.
Could this be the end of bullish defense of $1.165 support?
A look southward showed that the $1.165 support level has been vital for bulls. Notable bullish rallies have occurred from the support level in June and July 2023. Despite Optimism’s recent bearish structure, the level has held firm to stem the bearish slide.
However, the latest price action on OP’s price chart highlighted a weakening of the bullish defense.
The 12H timeframe showed that OP had posted three successive bearish candles over the past 48 hours. This was reflected in the Relative Strength Index (RSI) crashing below the neutral 50 and hovering just above the oversold zone, as of press time.
Furthermore, the On Balance Volume (OBV) dipped slightly, although it was still on a good uptrend.
A break of the support level would offer new shorting opportunities for sellers with a target of $1.042. However, another successful defense of the l
Go to Source to See Full Article
Author: Suzuki Shillsalot
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
