Disclaimer: Information presented does not constitute financial, investment, business or other advice and is the writer’s opinion only
- The optimism faced a major hurdle at $3,225.
- One category of whale was mainly responsible for the sales pressure witnessed so far.
Optimism (OP) challenged Bitcoin (BTC)) and rose 33% between Wednesday and Friday (22 and 24 February). One of the driving factors behind the rally was the Optimism Superchain announcement. A bold step to take Ethereum to internet-level scale to drive mass adoption.
However, the rally has reached a key resistance level of $3,225 at the time of writing, which may delay the momentum’s uptrend.
To read Optimism (OP) price forecast 2023-24
When can bulls re-enter the market?
The Optimism (OP) price action in February marked a parallel channel. It fluctuated between $3.225 and $2.1 but has reached an upper bound and could pull back, offsetting some of the gains made in recent days.
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Long-term bulls can wait to re-enter the market if the OP drops to $2.837 or the mid-channel level of $2.657. However, the ideal entry for a long position would be $2,479 or the lower channel boundary of $2.1.
The target would be the overhead resistance level of $3,225 or a bullish target of $4,367, based on the height of the channel. A bullish target hit would offer an extra 35% increase.
A break below the lower boundary of the $2.1 parallel channel would invalidate the bullish thesis. The drop can be seen at $1,911 or $1,500.
The OBV (On Balance Volume) has been increasing since the beginning of 2023, showing genuine demand for the token. Although the RSI displayed divergence for the price action, the value was above 50 and therefore bullish.
OP saw positive high weight sentiment but…
According to Santiment, OP has seen a rise in sentiment, showing that the recent announcement on its Superchain has received positive social interactions. Likewise, active addresses have increased over the last 24 hours, indicating an increase in trading volume and general buying pressure that has driven the uptrend.
Notably, the selling pressure seen at press time after the OP hit air resistance came from a key whale category with 100K – 1M OPs.
However, a big whale with over 1 billion OPs, 70% of the supply, was piling up. Other whales controlling 13% and 11% of the supply were also piling up. This suggests that the bullish run may continue.
However, caution is advised as the short positions of $1.9 million and the long positions of $1.5 million were liquidated within the last 24 hours. according to for Coinanalyze.