- So the price has gone down below the target of 0.25 for a head-and-shoulders pattern in SOP.
- It means up to $0.25 drop corresponds to almost 70 per cent downside from the current.
- The bearish pattern in SOP indicates more price drop for the near-term scenario.
Optimism (SOP) has breached a critical support area recently, and on its weekly chart, it creates something like a head-and-shoulders pattern. This is really a classical indicator of a downward sloping market, which, when confirmed, usually leads to the price of Optimism heading southward for the next few months. The downside target painted by the breakdown of the neckline from the head-and-shoulders pattern is at $0.25, representing a huge price drop from the current price level of $0.86.
The head-and-shoulders is considered a classical chart pattern around market sentiment, especially when broken, and it certainly has put an undercurrent under Optimism. This could lead to further falls as the market adopts a more risk-off approach in sentiment. The target of $0.25 is based on measured movement from the pattern, which points toward fairly serious downside once this trend continues.
Target price of the downtrend in Optimism
The traders have their eyes on the $0.25 target for Optimism now. It is a price that directly represents the support zone , and theoretically in a continued downward trend in the market, the price is expected to make a test towards this level. The break through the support is further confirmation that the outlook from traders is indeed for something bearish on Optimism’s price in the coming future.
With Optimism fighting to stay above $1.00, the price probably continues to follow this trajectory of decline through that downward head-and-shoulders formation. Investors will need to keep watching the price very carefully for indications that may signal a possible stabilization or reversal, before even considering entry.
Forecast on Optimism Price
The prices of Optimism are expected to remain under pressure for the next few weeks. $0.25 is the most critical price level that will have to be watched closely. It is at this price level where there could be a strong possibility to see additional declines, should it not hold firm. For now, that bearish trend is still intact, keeping traders prepping for a continued decline in Optimism’s prices.
