Optimism (OP): A Potential Bullish Reversal
Looking at Optimism’s (OP) weekly chart, the price action has been confined within a year-long falling wedge pattern. The most recent downward move began on December 7, when OP was rejected at $2.77 from the wedge’s upper resistance. This rejection sent its price downward, testing the support trendline at $0.79.
Currently, OP has managed to hold this support and bounced back to $1.18, indicating increasing buying pressure. The MACD is showing early signs of a potential bullish crossover, which hints at the possibility of a reversal in the coming weeks.
Key Levels to Watch for Optimism (OP)
- Support Level: $0.79, where OP bounced back and found buying support.
- Resistance Level: $1.80, the upper resistance of the falling wedge pattern.
- Near-Term Target: 25-day Simple Moving Average (SMA), which may act as an additional resistance level.
If OP maintains its momentum, it could attempt a recovery toward the upper resistance of the wedge at $1.80. A successful breakout from this wedge could shift the trend to a bullish outlook, opening the door for further gains.
Maker (MKR): Signs of Recovery
Similar to Optimism, Maker (MKR) has also been following a year-long falling wedge pattern. The most recent decline began on December 2 when MKR was rejected at $2,424 from the upper resistance of the wedge. Following this rejection, MKR experienced a correction, falling to the support trendline at $789.
Currently, MKR has held this support level and bounced back to $1,064, showing signs of increasing buying pressure. The MACD for MKR is beginning to curve upward, suggesting early signs of a recovery.
Key Levels to Watch for Maker (MKR)
- Support Level: $789, where MKR found strong support and bounced back.
- Resistance Level: $1,600, the upper resistance of the falling wedge pattern.
- Near-Term Target: 200-day Simple Moving Average (SMA), which could act as a key resistance in the near future.
If MKR continues its upward momentum, it could attempt a recovery toward the upper wedge resistance at $1,600. A confirmed breakout from this pattern would signal a shift in trend toward a bullish structure.
Is a Trend Reversal on the Horizon?
Both Optimism (OP) and Maker (MKR) are showing early signs of a bullish reversal, but the timing of these breakouts will depend on broader market conditions. If Ethereum (ETH) continues its recovery and Bitcoin dominance continues to decline, it could provide additional momentum for altcoins like OP and MKR.
For now, traders should closely monitor key resistance levels and trading volume for confirmation before expecting a full-fledged recovery. A successful breakout from the falling wedge patterns could set the stage for strong gains in the coming weeks.
Conclusion
In conclusion, both Optimism (OP) and Maker (MKR) are showing promising signs of recovery, having tested key support levels and bounced back with increasing buying pressure. These assets are currently in a falling wedge pattern, which could signal a trend reversal if the breakout occurs in the near term.
While a full recovery is not guaranteed, the growing momentum and technical indicators suggest that OP and MKR could be well-positioned for a bullish move if broader market conditions align in their favor. Traders should monitor key levels and volume for confirmation before taking action, as these breakouts could lead to significant price gains.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
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