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- Optimism maintained its upward trend despite a pullback in key price levels.
- Market sentiment remained optimistic about the positive funding ratio.
Optimism [OP] The bullish rally faltered at a key price level, with the overall crypto market continuing to send mixed signals. Earlier, Optimism embarked on a remarkable 72% rally from the June low of $1 to reach the $1.8 price level.
Read Optimism [OP] Price Forecast 2023-24
Despite the price rejection for Optimism, total crypto market volume grew 43% in the last 24 hours, per CoinMarketCap. This could give OP bulls an extra boost to get past this price hurdle.
Bullish rally aims to reach the $2 psychological price level
Source: OP/USDT on trade view
A look at Optimism’s uptrend over the four-hour time frame showed that the altcoin made a series of higher lows as prices rose. July brought further gains as buyers cleared the $1.4 resistance level.
The upward trend of optimism was accompanied by an increase in trading volume, as evidenced by the OBV (On Balance Volume). Similarly, the RSI (Relative Strength Index) remained above the neutral 50, despite a sharp drop following the recent price drop.
Both indicators indicated that significant buying power was still available to bulls.
Zooming out to the higher time frame (12H) showed a bearish order block at the $1.8 price level. Bulls will have to clear this hurdle to reach the $2 short-term target. This could be supported by Bitcoin [BTC] breaking its narrow price range ($28.8K – $29.3k).
If this level is not reached on the first try, bulls will find support at the $1.4 to $1.5 price level. If bears break below this near-term support, it could turn the optimism bearish on the lower timeframes.
The bullish conviction remains strong in the futures market
Source: Coinalyse
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Optimism’s Open Interest maintained its uptrend in the one-hour timeframe despite the pullback in price. This emphasized the prevailing bullish sentiment. Per Coin analysisthe OI recorded a positive 10.6% change over the past 24 hours to demonstrate continued bullish support.
Likewise, the funding rate was positive. Together, it indicated that the press-time pullback was only a temporary setback and that Optimism could see more gains in the near term.