The Optimism (OP) price reached a new all-time high on Feb. 3. Whether it moves above the $3.22 resistance area can determine the future trend’s direction.
The Optimism price has exploded in 2023, increasing by 255%. This led to a new all-time high price of $3.13 on Feb. 3. The high was made at exactly the 1.61 Fib retracement of the previous drop.
Since Fib extensions are used as resistance/support whenever the price reaches a new all-time high, whether OP manages to break out above it or gets rejected could determine the future trend.
In case of a breakout, the next resistance would be at $4.83, the 2.61 Fib extension. However, if the rally loses steam, the Optimism price could fall to the horizontal support level of $2. The area previously acted as resistance before turning to support on Jan. 25.
While the daily RSI generated bearish divergence (green line), it seems to have broken out from the bearish divergence trend line.
