"OP Coin Analysis: Weekly Support Breakdown"💹 Let's dive into this Layer 2 coin, update our previous analysis, and examine new entry triggers together.
🌟 Weekly Updates:
Starting from Monday to Wednesday, we'll cover , Monday: Bitcoin and Dominance analysis , Tuesday: Ethereum and ETH/BTC analysis , Wednesday: Gold analysis
These are in addition to our daily analyses.
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📰 Market Sentiments:
Yesterday was a busy day for news, with predictable announcements that largely neutralized each other. As expected, the market had directionless fluctuations, and it was better not to trade.
📊 Weekly Time Frame:
Due to the novelty of this coin, we lack extensive data like other charts, but it's still analyzable. After breaking its previous ATH and encountering resistance at 4.478, we saw sellers enter the market. With an engulfing candle that swallowed several previous candles with significant volume, we experienced a drop to the support at 2.063, followed by a pullback to 3.003, setting us up for a further decline.
🏦 We formed a higher peak, showing complete divergence in both volume and RSI. While I haven't discussed divergence much, I plan to teach it soon. For now, notice that my current use of divergence isn't to preemptively open positions or other actions, but to factor it into analysis and reduce confirmation for position openings.
There's a trendline that, after recent contacts, has shown weaker returns compared to previous ones, indicating diminished strength. If this trendline breaks, targets like 1.073 are not out of reach.
🔄 Daily Time Frame:
We're currently at significant support. If the candle closes as is or engulfs, it can confirm the continuation of the daily downtrend. Additionally, if our RSI breaks 32.58, we can confirm the continuation of the trend with increased volume, and if RSI enters the oversell territory, sharp moves may occur.
Note the support at 1.854. I didn't draw this line because our future outlook holds more significance, and after the initial break, multiple touches at 2.029 make it the better place for our line.
🔍 Trading Strategy:
📈 Long Position:
It's better to forget about long positions for now and trade another coin. Even if there's a sharp upward move, we'll have better confirmation of an uptrend.
📉 Short Position:
In both this timeframe and lower timeframes, after breaking 2.029, ensure you have a position as the potential move is worthwhile.
💡 This coin also has a bearish chart against Bitcoin, having reached the lowest supports of its lifetime. Using pair charts can provide higher risk-to-reward opportunities.
🕰️ Due to its strong bearish trend, we'll accompany short positions, but if it gives a long trigger, we'll act more cautiously and consider trading another altcoin.
📌 Support and Resistance Levels:
Support Levels: 1.592, 1.170
Resistance Levels: 2.962, 4.078
😊 If you'd like me to analyze a specific coin or currency pair, be sure to comment so that I can allocate the next analysis for you!
⚠️ Also, please remember that I'm just an analyst, and this isn't financial advice . We're here to stay in the market and maximize profits by adhering to risk and capital management principles.
