Optimism [OP] Faces Roadblock – Will Bulls Overcome?

• Optimism [OP] attempted to reverse its losses from last week, but was faced with a roadblock.
• Bitcoin’s [BTC] struggle to stay above $26k could make it easier for sellers to exploit the resistance levels of $1.55 – $1.77.
• A closing above $1.61 would invalidate the short set-up and retest of the resistance level at $1.70 could be feasible if so.

Optimism’s [OP] Attempt To Reverse Last Week’s Losses

Optimism made an attempt to recover the ground that was lost last week, however they were met with a roadblock that could come in the way of their momentum. At press time, Optimism was on track to reverse last week’s losses as the derivatives market was gradually shifting towards being bullish and outperformed Arbitrum [ARB]. The native token, OP, reacted positively to this development by attempting to reclaim last week’s losses but was met with a roadblock instead.

Potential Roadblocks Faced By OP

The potential roadblock that OP is facing consists of a weekly bearish order block (OB) of $1.55 – $1.77 (red). If this is exploited by sellers due to Bitcoin’s [BTC] struggle to stay above $26k, then a price reversal would occur offering those who shorted an opportunity with an entry at $1.55 and take-profit target at $1.40 .In order for the bulls‘ momentum not be blocked by this OB, they will need to clear the immediate resistance level at $1.50 in order for any upswing scenarios like retesting of resistance level at 1:70..

Capital Inflows Into OP Market

The Chaikin Money Flow (CMF) indicated massive capital inflows into OP’s market while Relative Strength Index (RSI) hadn’t decisively crossed above 50-mark yet and rejection at median level could signal seller re-entry . More short positions ($264k) were liquidated than longs ($162k) before 12 hours ago as reported by Coinglass .

Conclusion

Optimism [OP], made an attempt to reverse its loss from last week but has been met with a potential roadblock in form of a weekly bearish OB which sellers can exploit due to Bitcoin’s[BTC] struggle staying above 26k . Bull’s will need clear immediate resistance level at 1:50 for any upswing scenario like retesting resistance level 1:70 and RSI rejection at median level could signal seller re-entry . Capital inflow into OPs market indicated massive capital inflows while more short position were liquidated than longs 12 hours ago as reported by Coinglass

Disclaimer

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