Optimism's OP token has declined 1.94% over the past hour to trade at $1.44. With a market cap of $1.00 billion, OP remains one of the top layer 2 solutions by valuation.
Looking at the numbers, OP has dropped 7.84% over the past 24 hours. The 7-day decline stands at 3.95%, while the monthly performance is positive at +6.42%. However, OP remains down 39.51% over the trailing 6 months, indicating prolonged bearish momentum.
The recent 1.94% hourly drop shows selling pressure remains dominant in the short-term. Support may emerge around $1.40, with resistance at the 50-day MA near $1.60.
What Key Levels Should OP Traders Watch?
On the downside, look for support around $1.40. Below that, the 2022 lows near $1.20 come into focus.
On the upside, resistance is seen at the 50-day MA around $1.60. Above that, OP would face further resistance around the $2 level.
Is Optimism a Good Buy at Current Prices?
OP remains deep in a long-term downtrend, which is likely to see rallies sold into by bearish traders. Aggressive buyers could target entries near $1.40 support, but would need to keep tight stop losses.
Conservative traders will want to see OP reclaim its 50-day MA at $1.60 before anticipating a bullish shift in the trend. Until then, the path of least resistance remains to the downside within the broader bear market.
In summary, Optimism's price action remains bearish across timeframes. A meaningful break above the 50-day MA is needed to signal bullish momentum is returning. Until then, traders should treat any oversold rallies asselling opportunities within the larger downtrend.
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