The price of Optimism (OP) has experienced a sharp decline over the past month, dropping by 47.04% in just the last 30 days and 20.89% in the previous week. As a result, it has become one of the most severely affected cryptocurrencies in recent bearish trends that have impacted the broader market.
Moreover, Optimism’s (OP) price performance has been notably weak. It is currently down 77.02% from its all-time high of $4.85, reached in March 2024, and changing hands for $1.12 at press time.
To add to its struggles, analysts are now warning of a possible further decline in Optimism’s price.
Crypto Analysts Warn of Further Optimism Price Decline
Ali, a well-known crypto analyst, warns that the price of Optimism ($OP) might face a correction. The chart shows a classic head-and-shoulders pattern, a common sign that the price may drop.
This pattern includes a peak (the “head”) and two smaller peaks (the “shoulders”). This usually means that the Optimism price could shift from rising to falling. If this pattern is confirmed, it suggests that sellers are taking control, likely leading to a price drop soon.
At the time of posting, $OP was trading around $1.0853, hovering just above the neckline. This suggests that traders should monitor this level closely for a confirmed breakdown.
If the price falls below the neckline with strong trading volume, it could confirm a head-and-shoulders pattern and result in a significant price drop. Traders will look for support around the $1.05 to $1.06 range, where buying might step in.
On the other hand, if the price does not drop below the neckline, the pattern may not hold, allowing for a potential bounce back up.
OP Coin Bulls Are Losing Momentum
Crypto analytics platform CEXscan also offers a similar bearish view while offering its technical analysis of Optimism (OP/USDT). The analysis presents a bearish overall trend despite intermittent consolidation and minor upward corrections.
According to them, the 200-EMA remains downward-sloping, reinforcing a long-term bearish bias, while shorter-term EMAs (20, 50, 100) fail to sustain a breakout above it.
Key support levels lie in the $1.05 to $1.10 range, with resistance around $1.70 to $1.90, which has repeatedly capped price surges. However, the price movement lacks strong support, meaning these levels have not been tested thoroughly.
Volume analysis backs up the bearish trend. Most spikes in volume happen during consolidation or major price changes. In contrast, bullish movements often do not have enough volume to maintain upward momentum, adding to the overall downward pressure.
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