In anticipation of the upcoming Federal decision regarding interest rates scheduled for Wednesday, November 1, the cryptocurrency Optimism (OP) finds itself trading within a distinct range. Trading data from TradingView reveals that this digital asset encountered a barrier at the $1.45 mark, subsequently retracing to a liquidity level of $1.35.
Historically, the liquidity range spanning from $1.33 to $1.35 has often acted as an enticing entry point for OP bullish investors. Simultaneously, the range between $1.40 and $1.46 has demonstrated itself as a profit-taking zone for short-term traders. The future trajectory of OP’s current range is intrinsically tied to Bitcoin’s performance and its ability to breach the critical $35,000 threshold before the Federal announcement.
For OP to successfully break free from its current near-term range pattern, it must surmount key obstacles at price levels of $1.50 and $1.59. A failure to do so could potentially trigger a bearish downturn, steering the digital currency toward its dependable support floor, which lies between $1.26 and $1.28.
Notable market indicators, such as the Chaikin Money Flow and On-Balance-Volume (OBV), have drawn attention to above-average capital inflows and substantial spot market demand for OP. These indicators suggest the possibility of near-term liquidation, with approximately $1.67 million on either side.
As investors keep a close eye on the Federal decision regarding interest rates, it becomes evident that the performance of OP and other cryptocurrencies could be profoundly influenced by these macroeconomic developments and market sentiments. This underscores the intricate relationship between traditional financial markets and the world of digital assets.
