Optimism Slides 1.94% to $1.44 - Key Analysis for OP Traders

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.

Check our guide of the most promising crypto

Read more