Will Optimism Shine in June?

After going through a price correction since mid-March of 2024, the price of Optimism (OP) has been growing progressively since mid-April, climbing 20% from its year-to-date lows.

Will OP spike in June?

Daily time frame analysis

OPUSD - 1 Day Time Frame

Currently, OP is trading within a bearish range characterized by distinct resistance and support levels exerting significant pressure on its price. The key factor likely to influence future price movements is the selection of internal liquidity.

Buy-side Liquidity is found in the Premium zone, whereas Sell-side Liquidity is located in the Discount zone. These levels correspond closely to the defined resistance and support zones, providing traders with clear conditions for entering trades.

When to buy OP?

Should the price dip below the Internal Sell-side Liquidity on the daily timeframe without closing below the lower support zone boundary (marked in blue), traders may consider entering buy positions.

This approach is especially viable if, on a lower timeframe, the price creates an Inversion Fair Value Gap (IFVG) accompanied by an Order Block (OB). A Stop Loss (SL) order should be placed below the internal low, targeting the External Sell-side Liquidity.

When to sell OP?

Conversely, a sell order could be initiated if the price first reaches the Internal Buy-side Liquidity. The conditions for this scenario mirror those of the buy scenario but are adjusted for selling.

Specifically, the price should not close above the upper resistance level, with targets set at the External Sell-side Liquidity and the SL positioned above the internal high.