In a remarkable turn of events, Optimism’s price catapulted back in a swift turnaround after hitting a two-month low. The altcoin now showcases promising bullish indicators but faces potential resistance from short-term investors safeguarding against prospective losses.
As of the latest update, Optimism is trading at $1.341, hovering below the critical resistance threshold of $1.338. Previously tested as a robust support base, this level is key to triggering an upward surge. A successful breach, transforming it into a support, could set the stage for a bullish momentum. This shift would also pave the way for Optimism to reclaim the 50, 100, and 200-day Exponential Moving Averages (EMA) as support, propelling it towards $1.663 and beyond.
The indicators are flashing positive signs, with the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) painting an optimistic outlook. The RSI is poised to breach the neutral 50.0 line in tandem with price increments.
Similarly, the MACD is on the cusp of a potential bullish crossover. A diminishing presence of red bars in its histogram hints at waning bearish sentiment, while the emergence of green bars signals bullish momentum.
However, a potential scenario of an unsuccessful breach cannot be discounted. Should Optimism pull back from the $1.338 mark, it might revisit the established support at $1.069, which has held for the past three months. Breaching this level would nullify the optimistic outlook, potentially resulting in investor losses.
A sense of caution arises as the influence of short-term interests hangs over the path of Optimism’s price movements. Without significant external factors, the fates of OP holders often align. Should there be a resurgence in price, it might tempt investors to seize profits, potentially instigating a notable decline.
The concern hinges on the behavior of investors. A mere 1.4% of active addresses show gains, contrasting with 31.7% incurring losses. The remaining 66.9% find themselves uncertain, having acquired their OP holdings during price fluctuations between $1.320 and $1.440.
Prospective Optimism investors must recognize the altcoin’s susceptibility to short-term sell-offs as a priority. Even in the event of a possible rebound, adjustments may occur due to the cautious approach of short-term traders (holding OP for less than a month). At the same time, long-term holdings (over a year) remain inactive for almost a month.
