• Optimism (OP) has rallied +5% since yesterday as part of a recovery rally.
• OP is currently trading at $1.55, but faces resistance from the 20DMA.
• If the 20DMA flips to support, OP could target its 200DMA at $1.95, however rejection could lead to a tumble back to lower trendline support at $1.2.
Optimism Price Analysis
As leading Ethereum layer-2 scaling solution Optimism (OP) enters 5th day of recovery rally, investors are asking is it too late to buy optimism.
Recent Price Movement
Optimism has rallied +5% since yesterday , as OP price action continues to grind to the upside in a hard-fought recovery rally fuelling bag-holders hopes. This comes following a troubled summer for the layer-2 project , which has seen a -28.5% bleed-out since the start of May.
Is It Too Late To Buy?
As the recovery rally becomes emboldened, OP is currently trading at a market price of $1.55 (a 24-hour change of +1.77%). The upside move marks the 5th day of technical rally structure, which has seen OP bounce +30% following a re-test of lower trendline support on August 17.
Resistance Levels and Indicators
But trouble could be on the horizon, as the recovery rally has now entered a serious area of resistance stemming from the 20DMA. Pushing off the 20DMA would prime OP price action to target the 200DMA (which stands high at $1.91). This move would also heat up optimism’s indicators with RSI heating up rapidly and MACD still reflecting months of downside momentum with bearish signal.
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Conclusion
Overall, OP’s technical structure appears precarious, with significant resistance levels forming a key area to watch on short time frames and no lower support levels below $1.50 below should there be any rejection from here.