Is It Too Late to Buy Optimism? OP Price Rockets Up 26.8% as the Latest Meme Coin Prepares to Launch

cryptonews.com:

Leading layer-2 scaling solution Optimism has experienced a strong week’s performance on the market, with OP price rocketing up +26.8% – leaving some side-lined traders asking ‘Is It Too Late To Buy Optimism?’.

Markets have been invigorated by the explosive upside move by OP price, however, sentiment amongst prominent traders on Crypto Twitter (X) appears to be shifting – with increased numbers of calls for a retracement move.

$OP entered my zone , I'll try to short #OP around here. pic.twitter.com/zuBxOb1ryA

— CryptoMoneyKing (@CryptoMoneyKing) December 22, 2023

As OP pushes into the upper echelons of the breakout channel, Optimism is currently trading at a market price of $2.95 (representing a 24-hour change of +17.14%).

This following a major +36% break-out over the past 48-hours, triggered by a 6-day panhandled consolidation above lower support at $2.10.

With price now seeking to retrace, multiple new lower supports have emerged, with likely downside footholds at $2.75 and $2.5.

Indeed, with OP price shifting away from the 20DMA amid the dramatic upside move, a healthy retracement would return Optimism to crucial moving average support.

The RSI reflects this need for retracement, with a severely over-heated signal at 74.54 – suggesting OP price is overbought at current levels.

However, this is conflicting in momentum on the MACD, which continues to display bullish divergence at 0.050.

Overall, OP price looks strong but over-extended here, with a retracement likely to come before any further upside movements.

This leaves OP price with an upside target at $3.35 (a potential +9%).

While downside risk could see OP price slump to $2.5 (a possible -16.92%).

Optimism’s current risk: reward proposition therefore stands at 0.53, a bad