OP Price Analysis: OP Price may take a downward correction

• The OP price is currently trading at $2.269 while seeing a change of 44% in 24-hour trading volume.

• The OP price is observing an increase of 1.45% in the last 24 hours.
• The OP price might make a bearish correction in the upcoming days.

The bears are currently making a severe attempt to take control of the OP price action. After taking rejection from the price of $3.263 twice the OP price made a bearish double-top pattern followed by a lower low. The double-top is an M-shaped bearish reversal pattern that is often seen at the top of a trend.

In the double top pattern, a price after making a higher high takes rejection from the previous resistance level indicating that the buyers are refusing to support the price above the rejection point which is often followed by a sharp downfall. At this point, the sellers start taking over the price action.

OP price making a bearish reversal on the (Daily Timeframe)

Source: OP/USDT by TradingView

As illustrated in the image given above the OP price after taking support from $1.000 made a bullish rally and started trading on an uptrend. After making an extremely bullish rally the price took a rejection from $3.263 it made a bearish correction of 35 percent the OP price made another attempt to cross above the resistance level but did not succeed.

From that point, the price made a severe downfall of 45 percent, breaking the previous bull trend by making a lower low pattern. Subsequently, the OP price made a lower high which might be followed by a lower low. Although OP price has major support below the current level in the form of 200 EMA.

Technical Analysis ( On 1 Day Timeframe )

Source: OP/USDT by TradingView

The RSI line after reaching the overbought level in early January started making a divergence from the price action. Where the price was making a higher high and higher low RSI line was making a lower high and lower low. Which is a bearish reversal signal. After this Open Network price broke its bull trend near early march when the RSI line crossed below the median line. The current RSI value is 46.72 points which are taking resistance from the 14 SMA around 46.98 points.

Conclusion

The Open Network price is currently trading above the 200 EMA which is a critical EMA line that indicates whether the particular price action is on a bull or bear trend. According to this, the OP price is currently trading on the overall bull trend. Although the price action and indicators are suggesting that Open Network price can take a bearish correction. The 20 EMA has recently crossed below 50 EMA whereas, on the other hand, Open Network is also taking resistance from 50 EMA. From which it can make a downfall of 21 percent.

Technical levels –

Support -$2.027 and $1.768

Resistance – $3.000 and $2.600

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Source