Can optimism remain above the $1.46 support?

• OP eventually crossed the resistance at USD 1.43, indicating a potential to move towards USD 2.
• There could be an entry around $1.53 if the price DAA maintains the same momentum.

Optimism [OP] lived up to its name and gained 7.65% in the last 24 hours. The jump followed the rise of most assets in the crypto market, led by Bitcoin [BTC]. But before the rise, analyst and investor Crypto Tony talked about OP’s potential.

Read Optimism [OP] Price prediction 2023-2024

OP reverses the target

In his after on X (formerly Twitter) Tony applauded OP for blasting through a resistance. A closer look at the charts by AMBCrypto revealed that the resistance being talked about was $1.43.

$OP / $USD – Update

Nice push against the resistance zone here, looking forward to going long if we can turn $1.46 into support and stay above pic.twitter.com/6NmJvenAc7

— Crypto Tony (@CryptoTony__) November 4, 2023

The analyst did not just focus on the resistance. Instead, he said opening a long OP position if it turns around $1.46 was the right thing to do. In short, a long crypto involves a trader buying an asset while expecting an increase in its price.

If the price of the asset rises, the trader can sell it for a profit. The opposite of this is short. So instead of anticipating a price rise, traders profit when asset prices fall.

Interestingly, OP’s price was changing hands at $1.53 at the time of writing, meaning traders who may have longed for the cryptocurrency would most likely have made a profit.

Likewise, there is a climax opportunity that there are traders who have targets much higher than $1.53. Therefore, AMBCrypto believes that combining on-chain data and the technical outlook can be more beneficial than using only one aspect to determine direction.

Lungs can enter

Therefore, it was necessary to look at the Price Daily Active Addresses (DAA) metric. From the data of Santiment, that of Optimism price-DAA the divergence has increased. This is a sign of an increase in overall usage of the Optimism network.

Source: Santiment

However, the OP price grew more than the DAA, suggesting that this is possible entry for traders who want to long the token. If the price has fallen and the DAA has risen, this is an indicator that it is time to sell or short the token.

AMBCrypto analysis showed that OP has the potential to move towards $2. This statement was due to the momentum represented by the accumulation/distribution (A/D). At the time of writing, the A/D line was increasing.

Is your portfolio green? look at the OP profit calculator

The increase indicates that there was enough volume available to support the OP price action. Therefore, a bullish move may not be reversed anytime soon. The Relative Strength Index (RSI) also indicates that buying momentum was at its peak.

However, the RSI at 70.11 meant that OP was overbought at the time of writing. A downward movement can therefore occur in front of a pump. Also, a retest of $1.43 may be possible before OP tries to approach $2.

Source: TradingView