A popular altcoin that has been missing out on the BTC rally for a long time has taken action when the markets calm down. Surprising rallies like this are not so surprising for the crypto market. That’s why experienced investors warn that investors who constantly switch between different alternatives and lag behind among altcoins during the bullish periods may face lower profits or even losses.
Why is OP Coin Increasing?
The price of Optimism (OP) Coin continues to gain with double-digit gains. The resistance trend line has been suppressing the price since its all-time high (ATH) level of $3.3 in February. In fact, we saw a drop to $0.9 in June. After that, with the delayed jump, the formation of lower bottoms started in October. The resistance line was tested 4 times in the same month and finally the expected breakout came.
With the breakthrough of the resistance that has been stationary for 260 days, the price reached a peak of $1.93. Despite the recent strong recovery, the price has not yet surpassed the horizontal range that has been supported/resisted since mid-2022. However, the increase in RSI along with the price indicates that the current rally could continue.
Expert Comments on OP Coin
So, while RSI indicates the start and continuation of the rally, what do market experts think? An analyst named CryptoPoseidonn drew attention to the $1.8 price zone. At the time of writing this article, OP Coin is exactly in this zone. According to the analyst, the rally is over and the bears need to break the $1.8 zone for lower levels. For now, this area is being protected.
Analyst Caleb Franzen also argues that the indication of a larger rally can be given with closings above $1.9. According to him, this breakout will happen soon and we will see OP Coin making new highs.
The readings on the daily chart emphasize the importance of the $1.9 resistance. The price range that coincides with the resistance line of the parallel channel has been stationary for a long time. Although the bullish divergence in RSI raises hopes that this area can be overcome, a drop in BTC below $37,000 can trigger profit-taking.
In case of a possible rally, we may see a decline to $1.2 with a target of $3.1 and a loss of support at $1.8.