Market
Optimism (OP) Falls Below $2.05, Signaling Bearish Trend
Optimism (OP) saw a bearish trend of -35% in June, sparking growing fear in the market and hesitation among investors.
This analysis will guide you in understanding and monitoring key indicators from both the technical and fundamental analysis of Optimism.
Technical Analysis of Optimism
Optimism is currently showing a bearish trend on the 4-hour chart. The 100-period Exponential Moving Average (EMA), represented by the blue line, acts as a dynamic resistance level, and the price is currently below this line, indicating ongoing bearish momentum.
The 200-period EMA, represented by the green line, also has a significant resistance level, and the price is well below it, further reinforcing the bearish sentiment. Additionally, the Relative Strength Index (RSI) is below 40, which suggests that selling pressure remains dominant.
Read More: Optimism vs. Arbitrum: Ethereum Layer-2 Rollups Compared
The Ichimoku Cloud provides further insight into the bearish outlook. The cloud is shaded in green and red, and the price is currently below it, signaling continued downward momentum.
The cloud’s red color further confirms this bearish trend. Key support levels to monitor are $1.622 and $1.306, with major resistance levels at $2.054, $2.307, $2.445, and $2.723. The RSI being below 40 indicates that the market sentiment is still bearish.
The overall trend for Optimism (OP/USDT) on the 4-hour chart remains bearish, as indicated by the price’s position below both the 100 EMA and 200 EMA and the Ichimoku Cloud, signaling downward momentum. Traders should be cautious and watch for potential rebounds at the support levels of $1.801 and $1.622 or further declines if these levels are breached.
Conversely, a break above the $2.05 resistance level and the Ichimoku Cloud could mean a potential bullish reversal.
Analysis of Optimism Profitability Metrics
Understanding the economic sentiment and behavior of participants within the Optimism blockchain network is essential for making informed decisions.
To do this, we look at the profitability of active addresses on the network. These active addresses are divided into three categories based on whether they are making a profit or loss: out of the money (addresses that are currently incurring losses), at the money (addresses that are breaking even), and in the money (addresses that are currently making a profit).
In June, the percentage of addresses losing money fluctuated a lot. It reached a high of 58.52% on June 8 and a low of 16.23% on June 5. From June 1 to June 7, this percentage rose from 15.12% to 56.22%, with a big jump on June 7.
By June 17, this percentage had decreased to around 48%, showing that fewer addresses were losing money compared to the peak on June 8.
Read More: What Is Optimism (OP)
The percentage of addresses breaking even showed various trends, ranging from 35.60% on June 8 to 77.12% on June 16. From June 1 to June 7, the percentage dropped from 78.50% to 37.61%, with a sharp decline on June 7. After reaching a low of 37%, the percentage climbed back up to 57% on June 16 and settled at 47% on June 17.
The percentage of addresses making a profit changed moderately throughout June. On June 5, the peak was 10.24%, meaning only 10% of active addresses were in profit at the trading price range of $2 – $2.90. From June 1, the percentage increased from 6.37% to 10.24% on June 5, then decreased to 5.35% on June 17.
When a high percentage of addresses are losing money, it indicates that many participants are facing losses. This can lead to increased sell pressure, where more people might sell their holdings to cut losses, leading to bearish market sentiment. Fluctuations in the percentage of addresses breaking even suggest periods of uncertainty or stability.
Strategic Recommendations
As highlighted in the analysis, both the fundamental and technical outlooks are bearish. For a potential reversal to a bullish trend, OP must rise above the critical resistance level of $2.05. This level is essential to monitor, as breaking it could signal a shift in market sentiment. Additionally, traders should watch the 4-hour Ichimoku Cloud. If OP breaks through the cloud to the upside, it could mark the end of the current bearish trend and the start of a bullish phase.
In the event that the Optimism price fails to break the $2.05, the bearish continuation could be confirmed. Monitoring the profitability of active addresses is a good way to understand if there is significant pain in the market. Buying during extreme pain can be a strategic move for long-term holders, especially since we are in a crypto bull market that is not over yet.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
XRP price started a fresh decline below the $2.080 zone. The price is now recovering some losses and might face hurdles near the $2.150 level.
- XRP price started a fresh decline after it failed to clear the $2.20 resistance zone.
- The price is now trading below $2.120 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance at $2.10 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair might extend losses if it fails to clear the $2.150 resistance zone.
XRP Price Faces Resistance
XRP price failed to continue higher above the $2.20 resistance zone and reacted to the downside, like Bitcoin and Ethereum. The price declined below the $2.150 and $2.10 levels.
The pair even declined below the $2.050 zone. A low was formed at $2.023 and the price is now attempting a recovery wave. There was a move above the $2.050 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $2.215 swing high to the $2.023 low.
The price is now trading below $2.120 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.10 level. There is also a connecting bearish trend line forming with resistance at $2.10 on the hourly chart of the XRP/USD pair. The trend line is near the 50% Fib retracement level of the recent decline from the $2.215 swing high to the $2.023 low.
The first major resistance is near the $2.150 level. The next resistance is $2.1680. A clear move above the $2.1680 resistance might send the price toward the $2.20 resistance. Any more gains might send the price toward the $2.220 resistance or even $2.250 in the near term. The next major hurdle for the bulls might be $2.2880.
Another Decline?
If XRP fails to clear the $2.120 resistance zone, it could start another decline. Initial support on the downside is near the $2.050 level. The next major support is near the $2.020 level.
If there is a downside break and a close below the $2.020 level, the price might continue to decline toward the $2.00 support. The next major support sits near the $1.880 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now losing pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $2.050 and $2.020.
Major Resistance Levels – $2.120 and $2.150.
Brian Quintenz, the incoming Chair of the US CFTC (Commodity Futures Trading Commission), has begun meeting with Capitol Hill lawmakers before his nomination hearing.
On Monday, Quintenz met with Senator Chuck Grassley (R-IA) to discuss key regulatory issues, including the CFTC’s role in overseeing crypto spot markets.
CFTC Targets Crypto Spot Market After Derivatives
Brian Quintenz met with Republican Senator from Iowa Chuck Grassley to discuss another element in the CFTC’s crypto market structure regulation agenda. This time, the focus is on crypto spot markets.
“It was wonderful to meet with you Chuck Grassley and discuss your leadership on whistleblower issues as well as the future of the agency,” Quintenz stated.
Grassley also commented on their discussion. He highlighted the CFTC Whistleblower Protection Program for spot crypto markets as part of the agenda. Notably, Grassley is a member of the Senate AG Committee, the legislative body overseeing the CFTC.
Eleanor Terrett, host of the Crypto America podcast, indicated that the Senate AG Committee will have a significant role in part of the CFTC’s crypto regulation agenda. Specifically, it would have an outsized say in whether the CFTC could gain expanded jurisdiction over crypto spot markets.
The meeting comes as the CFTC moves closer to expanding its role in crypto regulation. US President Donald Trump tapped Quintenz, a former executive at venture capital firm Andreessen Horowitz (a16z), to lead the agency.
His appointment is part of Trump’s broader plans to reshape crypto oversight. This could potentially give the CFTC greater authority over digital asset markets.
Meanwhile, regulatory developments surrounding crypto have accelerated in recent weeks. The CFTC eased regulatory hurdles for the crypto derivatives market only days ago. The move will enhance market efficiency and attract institutional investors.
Beyond derivatives and spot markets, the CFTC is also exploring other areas of crypto oversight. The agency recently announced plans to host a roundtable discussion on prediction market regulation. It aims to address the regulation of decentralized prediction platforms.
Stablecoins are also on the agency’s radar. The CFTC also revealed a forum to discuss stablecoin regulation and potential risks associated with their widespread adoption.
Additionally, the Federal Deposit Insurance Corporation (FDIC) and the CFTC revoked previous crypto-related guidelines, signaling a shift in regulatory strategy.
Crypto markets can also not rule out the possibility of further collaboration between key agencies in the broader industry. Reports indicate that the US SEC (Securities and Exchange Commission) and the CFTC have discussed reviving a joint advisory committee to coordinate on crypto regulation.
If revived, the committee could serve as a bridge between the agencies. This would address concerns over jurisdictional overlap and streamlining oversight efforts.
As Quintenz prepares for his nomination hearing, his meetings with lawmakers suggest that crypto regulation will be a top priority for the CFTC moving forward.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Solana started a fresh decline below the $132 support zone. SOL price is now consolidating and might struggle to recover above the $126 resistance.
- SOL price started a recovery wave from the $122 support zone against the US Dollar.
- The price is now trading below $130 and the 100-hourly simple moving average.
- There is a key rising channel forming with support at $124 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if the bulls clear the $126 zone.
Solana Price Faces Resistance
Solana price started a fresh decline below the $135 and $132 levels, like Bitcoin and Ethereum. SOL even declined below the $125 support level before the bulls appeared.
A low was formed at $122.64 and the price recently started a consolidation phase. There was a minor increase above the $125 level. The price tested the 23.6% Fib retracement level of the downward move from the $140 swing high to the $122 low.
Solana is now trading below $126 and the 100-hourly simple moving average. There is also a key rising channel forming with support at $124 on the hourly chart of the SOL/USD pair.
On the upside, the price is facing resistance near the $126 level. The next major resistance is near the $128 level. The main resistance could be $132 or the 50% Fib retracement level of the downward move from the $140 swing high to the $122 low.
A successful close above the $132 resistance zone could set the pace for another steady increase. The next key resistance is $136. Any more gains might send the price toward the $142 level.
Another Decline in SOL?
If SOL fails to rise above the $128 resistance, it could start another decline. Initial support on the downside is near the $124 zone. The first major support is near the $122 level.
A break below the $122 level might send the price toward the $115 zone. If there is a close below the $115 support, the price could decline toward the $102 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $124 and $122.
Major Resistance Levels – $128 and $132.
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CFTC’s Crypto Market Overhaul Under New Chair Brian Quintenz
$2,300 Emerges As The Most Crucial Resistance
Solana (SOL) Holds Steady After Decline—Breakout or More Downside?
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