Optimism rises 38.6% on buying pressure, but…

Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

• Optimism saw heavy buying pressure causing prices to skyrocket.
• The sellers were not yet dominant, although they could force a pull back to $1.2.

Measured from the low of Monday, June 19 Optimism [OP] posted gains of nearly 40% within the next 48 hours. This rally was supported by eager buyers and demand has not yet weakened significantly.

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Bitcoin [BTC] also has an optimistic view on the charts, which could positively impact the altcoin markets. There was also the possibility of a pullback for the OP token price should a lower support level give way for the time frame.

Optimism is rejected from $1.5 – a deeper pullback could begin

Source: OP/USDT on TradingView

The H4 market structure was clearly bullish. On June 13, Optimism recorded a lower high at $1.2. A week later, on June 20, the bulls broke this level and announced their intent.

After that, OBV and trading volume skyrocketed in addition to prices. This showed strong demand and a strong short-term uptrend. An examination of the daily time frame chart showed that the $1.48, $1.55 and $1.67 levels are key resistances to follow.

Optimism has already been rejected at the $1.48 level, and another attempt to break it has stalled at $1.45. This caused prices to fall to $1.34 in the short term in support of the press.

Although the RSI was approaching the neutral level of 50, the OBV has yet to see a sharp drop. Therefore, the pullback might not turn into a downtrend as the selling pressure was not dominant yet.

Speculators dropped their bullish outlook

Source: Coin analysis

The price action of OP on the 1 hour chart over the past two days has been slowly moving downwards. The $1.48 rejection forced prices back to $1.345. During this time, Open Interest fell, showing short-term bearish sentiment.

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The spot CVD also trended down during the decline to highlight the selling pressure in the shorter time frames. Therefore, while the H4 chart remained bullish, a drop to the USD 1.345 support or further south could not be ruled out.

In case of another downward move, a retest of the $1.2 support zone could present a buying opportunity.