Investing.com | Editor Venkatesh Jartarkar
Published Oct 30, 2023 04:54PM ET
In the run-up to the Federal decision on interest rates due on Wednesday, November 1, cryptocurrency Optimism (OP) has been trading within a distinct range. The crypto asset hit a barrier at $1.45 before retreating to a liquidity level of $1.35, according to data from TradingView.
The liquidity level between $1.33 and $1.35 has historically served as an attractive entry point for OP bulls, while the barrier range from $1.40 to $1.46 has proven to be a profit-taking zone for short-term investors. The future trajectory of OP’s current range trend is closely tied to Bitcoin’s ability to breach the $35K threshold prior to the Federal announcement.
For OP to successfully break out from its near-term range pattern, it must overcome hurdles at price points of $1.50 and $1.59. Failure to do so could trigger a bearish downturn, directing the digital currency toward its reliable support floor between $1.26 and $1.28.
Market indicators such as the Chaikin Money Flow and On-Balance-Volume (OBV) highlight above-average capital inflows and spot market demand for OP. These indicators suggest near-term liquidation of around $1.67M on each side.
As investors watch for the Federal decision on interest rates, the performance of OP and other cryptocurrencies may be significantly influenced by these macroeconomic events and market sentiments, underscoring the interplay between traditional financial markets and digital assets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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Written By: Investing.com
