- Altcoin Sherpa predicts OP price surge, intends to sell at $2.
- OP demonstrates remarkable surge of 17% in the past week.
- Buying pressure surpasses selling pressure, reaching levels close to $1.73.
The recent surge in Optimism (OP) over the past week instilled a sense of assurance among market participants, particularly due to a recent forecast by a prominent crypto analyst. Altcoin Sherpa, a well-respected figure in the industry, divulged his near-term projection for OP to his extensive following of 196,300 individuals.
Altcoin Sherpa has identified OP as a robust altcoin within the crypto market. Additionally, the expert expressed intentions to sell at approximately $2, acknowledging the possibility of a temporary dip below $1.73 before the anticipated upward trend.
The analyst’s conviction regarding the potential increase in OP’s price could be attributed to the token’s recent performance. Over the past week, OP has demonstrated a remarkable surge of 17%, positioning it among the top performers within the market’s top 50 assets.
Positive Market Outlook
In addition to his analysis, Altcoin Sherpa took into account the technical perspective for his forecast. Upon reviewing the provided chart, Altcoin Sherpa observed that the 200-day Exponential Moving Average (EMA) has historically demonstrated a propensity to interchange the support and resistance levels in the vicinity of $1.64 and $1.67.
If the OP surpasses a more substantial level of support like the 200 EMA, it may suggest a potential shift in the price direction from a bearish trend to a bullish trend.
Based on the 4-hour chart of OP/USD, the support level has experienced an upward shift from $1.50 on July 30 to $1.65 on August 3. As a result, a bullish market structure has emerged. As of the time of writing, the buying pressure has surpassed the selling pressure, reaching levels close to $1.73.
Is it the right moment to sell?
Moreover, the Stochastic RSI exhibited a significant uptick, yet it fell short of reaching the overbought threshold at 80. Notably, the indicator indicated that the %K line (white) stood at 60.38, while the %D line (orange) registered a value of 74.04.
In the crypto industry, it is commonly observed that when the %K line surpasses the %D line, it is a favorable indication to initiate a buying position. However, in the specific scenario of OP, the %K line has instead dipped below the %D line. Consequently, this suggests it might be an opportune moment to consider selling OP shortly.
For OP to align with a bearish trend, the 50 EMA (yellow) must surpass the 20 EMA (blue) in an upward direction. Currently, the 20 EMA was positioned higher than the 50 EMA, indicating that buyers were still dominating the market.
In the event of a reversal in the EMA stance, the prevailing bullish structure could shift towards a bearish territory.
Given its present condition, OP can experience a slight retracement towards the $1.60 mark as the buying pressure may diminish. Nevertheless, a subsequent uptrend will likely materialize following this corrective phase.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
