Is Optimism (OP) About to Crash? This Chart Isn’t Pretty
- OP token has formed a bearish head and shoulders pattern, said Ali Martinez.
- If the pattern plays out, OP could retest the $0.95 – $1.00 support level.
- Investors should watch out for increasing volumes and a sharp retracement below the support level.
Optimism (OP), a major layer 2 cryptocurrency project, might be headed for a massive price decline. That’s because the altcoin has formed a well-known bearish pattern called the ‘head and shoulders.’ If the pattern holds true, the digital asset could drop to the $1 price level sometime soon.
According to a post on X (formerly Twitter) by crypto analyst Ali Martinez, the OP/TetherUS perpetual contract chart on Binance (seen below) has formed a Head and Shoulders pattern. The left shoulder formed when OP first rallied before dropping back. The head took shape when the price climbed to a higher peak of around $1.2, only to fall sharply afterward.
Next, the right shoulder showed up with a weaker rally, unable to go higher than the head, suggesting decreasing bullish momentum. The neckline seems to be around the $1.05 – $1.07 range. If OP breaks below this level with strong volume, it could trigger a shar…
The post Is Optimism (OP) About to Crash? This Chart Isn’t Pretty appeared first on Coin Edition.
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Is Optimism (OP) About to Crash? This Chart Isn’t Pretty
- OP token has formed a bearish head and shoulders pattern, said Ali Martinez.
- If the pattern plays out, OP could retest the $0.95 – $1.00 support level.
- Investors should watch out for increasing volumes and a sharp retracement below the support level.
Optimism (OP), a major layer 2 cryptocurrency project, might be headed for a massive price decline. That’s because the altcoin has formed a well-known bearish pattern called the ‘head and shoulders.’ If the pattern holds true, the digital asset could drop to the $1 price level sometime soon.
According to a post on X (formerly Twitter) by crypto analyst Ali Martinez, the OP/TetherUS perpetual contract chart on Binance (seen below) has formed a Head and Shoulders pattern. The left shoulder formed when OP first rallied before dropping back. The head took shape when the price climbed to a higher peak of around $1.2, only to fall sharply afterward.
Next, the right shoulder showed up with a weaker rally, unable to go higher than the head, suggesting decreasing bullish momentum. The neckline seems to be around the $1.05 – $1.07 range. If OP breaks below this level with strong volume, it could trigger a shar…
The post Is Optimism (OP) About to Crash? This Chart Isn’t Pretty appeared first on Coin Edition.
Read More