Optimism Rebound Hits Roadblock: Price Reversal Looms?
• Optimism (OP) attempted to rebound after hitting a low of $1.2, but it hit a key bearish order block of $1.374 – $1.457 (red).
• Mean Coin Age rose in June, but development activity faltered below its previous level.
• Bulls are still in control with the RSI pivoting from neutral and OBV surging close to $500 million; however, if OP drops below the key hurdle of $1.20, it could see further downside towards $1.1.
Optimism Rebound Hits Key Hurdle
Optimism [OP] trended lower after hitting a recent high of $1.5 in the second half of June, but it reversed the short-term downtrend after hitting $1.2 and attempted a recovery that has hit a roadblock and key bearish order block (OB) on the 4-hour chart at around$ 1.374 – 1.457 (red).
Mean Coin Age & Development Activity
The 90-day Mean Coin Age rose steadily from early June, signifying network wide accumulation of OP tokens in the same period with no sharp drops indicating that these tokens have remained unmoved for some time – which is bullish cue overall. Meanwhile, sentiment was in negative zone as development activity faltered below its previous level.
Bulls Still In Control?
On balance volume surged close to 500 million dollars suggesting strong demand in past few days although buying pressure eased as RSI pivoted from neutral level yet bulls were still in control due to lack of sharp drop on mean coin age metric which could be interpreted as an optimistic sign as well .
What’s The Next Move?
If this key hurdle persists over next few hours/days, OP could see retracement to immediate short-term support levels at 1:27 & 1:20 and if price breaks out above this point then we might see more upside towards$ 1:5 again otherwise if OP drops below this price point then we might see further downside towards$ 1:10 .
Conclusion
Overall while Optimism has made impressive progress in Layer 2 race outpacing Arbitrum [ARB] on key metrics there is still argument between bulls and bears over where price will go next despite bullish signs such as OBV moving above 500 million & RSI stabilizing near neutral level . So investors should keep an eye on how things progress for OP over coming days before taking any long term investment decisions .