• Optimism (OP) was on track to reverse last week’s losses, attempting to become the go-to Ethereum [ETH] Layer-2 scaling solution.
• However, OP is facing a roadblock that could come in the way of the bulls‘ momentum and expose the token to elevated sell pressure.
• If sellers exploit this roadblock, it could offer a shorting opportunity with an entry at $1.55 and a take-profit target of $1.40, but an H12 candlestick session close above $1.61 would invalidate this set-up.

Optimism Faces Roadblock

Optimism (OP) has been trying to recover from last weeks losses by becoming the go-to Ethereum [ETH] Layer-2 scaling solution of choice. The native token reacted positively and attempted to reclaim last weeks losses, however OP is faced with a roadblock that could come in the way of the bulls‘ momentum and expose the token to elevated sell pressure.

Shorting Opportunity

If sellers exploit this roadblock, it could offer a shorting opportunity with an entry at $1.55 and a take-profit target of $1.40, but an H12 candlestick session close above $1.61 would invalidate this set-up.

Capital Inflows

The Chaikin Money Flow (CMF) is showing massive capital inflows into OP’s market; however Relative Strength Index (RSI) has not decisively crossed above the 50 mark which can signal sellers re-entry if rejected at median level.

Liquidation Positions

According Coinglass data more short positions ($264k) were liquidated than longs ($162k). This indicates buyers are still confident in OP’s market despite current roadblock situation.

Conclusion

In conclusion, Optimism faces a potential roadblock that could come in between its recovery attempt and cause prices to reverse; however buyers still remain confident about OP’s market despite current situation as seen through liquidation positions data from Coinglass .

Von admin