Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion
- OP posted over 20% beneficial properties previously 24 hours on the time of writing
- Extra shorts positions liquidated on the decrease and better timeframes
Optimism [OP] is poised to reverse all losses seen in early June if its press time trajectory continues. The native token of the Layer 2 roll-up surged over 20% previously 24 hours, rising from $1.12 to $1.4.
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The upswing adopted Bitcoin’s [BTC] shock foray into the $29k zone regardless of the overhung of the Coinbase and Binance lawsuits. If the bullish sentiment persists and BTC holds its floor, OP might provide additional beneficial properties.
Can bulls push ahead?
Supply: OP/USDT on TradingView
In late Could/early June, OP traded sideways inside the $1.35 – $1.54 vary (orange). But it surely breached the vary and dropped decrease on 10 June after BTC retested $24k. After that, it entered one other slender consolidation vary of $1.07 – $1.18 (white).
BTC’s surge to $29k tipped OP to inflict a bullish breakout from slender vary formation. At press time, worth motion has retested and broke above the earlier range-low of $1.35.
Nevertheless, a worth rejection was doubtless from the mid-range of $1.44 if bulls cooled from the rally. A pullback retest on the range-low of $1.35 might provide new shopping for alternatives, focusing on the mid-range ($1.44) and the earlier range-high of $1.54.
A drop under the range-low ($1.35) and subsequent shut under $1.27 will invalidate the bullish thesis. Such a drop might see sellers struggle for management and sure devalue OP to $1.18.
Within the meantime, the Relative Energy Index (RSI) hit the overbought zone. Moreover, the On-Stability Quantity (OBV) registered a pointy spike, highlighting excessive shopping for strain and demand, respectively.
Brief positions discouraged
Supply: Coinglass
The liquidation metric indicated a robust bullish sentiment and favored bulls on the futures market entrance. Moreover, over $150k price of brief positions have been wrecked on the four-hour timeframe.
How a lot are 1,10,100 OPs price as we speak?
Extrapolated to the day by day timeframe, over $2.4 million in short positions have been liquidated, whereas longs suffered lower than $300k in the identical interval. Therefore, the bullish sentiment might persist except BTC encounters pullbacks.
