In a recent X post, a market analyst issued a short trade signal for Optimism, setting an entry at $0.4505, a target at $0.432, and a stop loss at $0.4675.
The setup suggests bearish continuation as the token struggles to sustain momentum near resistance. The technical configuration points to increasing sell-side pressure, with traders positioning for a pullback after repeated rejections at the mid-range resistance zone.
OP Price Structure Indicates Bearish Continuation
The accompanying TradingView chart highlights a decisive rejection around $0.4519, coinciding with a downward-sloping trendline and the 200-period moving average overhead. The red zone between $0.4532–$0.4662 marks a key resistance area where sellers remain dominant, repeatedly absorbing upward attempts. Meanwhile, the green zone between $0.4311–$0.4400 aligns with the short-term demand region and the analyst’s projected downside target of $0.432.
Source: X
This configuration underscores a clear bearish bias, with the asset trading within a descending structure. The sharp rise seen earlier in the chart failed to secure a breakout, leading to renewed selling as the token reversed from the midrange resistance. The setup resembles a textbook retracement pattern where short-term rallies are met with heavy supply.
At the time of writing, the coin trades near $0.4328, marking a 3.22% decline over the last 24 hours. The pair continues to consolidate after retracing from its mid-year peak near $0.88, signaling ongoing corrective action. The failure to reclaim the $0.45–$0.46 zone reinforces the bearish scenario, keeping the token vulnerable to further downside pressure.
Market Metrics Reflect Broader Weakness
According to BraveNewCoin data, Optimism currently holds a market capitalization of $766.6 million, ranking 129th globally, with a 24-hour trading volume of $105.4 million. The token’s 4.7% daily decline mirrors broader market weakness, as capital rotation shifts away from Layer-2 assets amid soft sentiment. Despite moderate trading activity, buying momentum remains insufficient to offset persistent sell pressure.
Source: BraveNewCoin
The consistency of volume near the $100 million mark indicates active participation, but the dominance of red candles suggests that market liquidity is flowing primarily toward exits rather than accumulation. Unless trading volumes shift in favor of buy-side control, the coin’s market profile may remain under strain in the short term.
Technical Indicators Show Bearish Momentum but Hints of Accumulation
At the time of the report, the BBPower histogram reads –0.1052, confirming that bearish momentum persists as price action remains pinned near the lower Bollinger Band. This sustained pressure signals strong control by sellers, consistent with the rejection pattern on the short-term chart.
However, the Chaikin Money Flow (CMF) remains positive at 0.06, indicating that some capital inflow persists despite the ongoing downtrend, possibly reflecting selective buying at lower levels.
Source: TradingView
If the asset stabilizes above the $0.43 support, it could encourage a short-term pause in the decline, allowing buyers to test the $0.46 resistance area once more. However, a decisive close below this level would validate UNKNOWN TRADER’s short setup, opening the path toward the $0.432 target and potentially extending losses toward deeper supports if selling intensifies.
The near-term outlook remains cautious, with sellers maintaining control while subtle accumulation hints at a possible base-building phase once volatility subsides.
