ARB and OP: Altcoin Analysis for August 31, 2023
Since our last overview, there's been no change in the primary cryptocurrency chart. Here's an in-depth look at the market dynamics of Arbitrum (ARB) and Optimism (OP).
Arbitrum (ARB)
Bitcoin's decline on August 18 had a marked impact on Arbitrum, pushing its value below the psychological $1 mark. Currently, ARB trades within the $0.90-$0.95 support zone. If this correction deepens, determining the next attractive price for buyers becomes challenging, since the asset has never plummeted this low before.
Immediate sell orders are set at the $1 mark. Beyond that, resistance levels stand between $1.02-$1.07 and $1.11-$1.14. For ARB to shift its current bearish trend to a bullish one, its price needs to consistently hold above $1.175.
ARB chart on the H4 timeframe
Optimism (OP)
Optimism has been on an upward trend since July 2022. Currently, the asset is trading sideways, trapped between a support zone of $1.35-$1.42 and a resistance level of $1.61. During Bitcoin's recent dump, OP briefly touched a local low at $1.21. However, buyers promptly bought the dip, pushing the price back above $1.4.
The prevailing sentiment suggests that OP may continue its upward trajectory. In this scenario, buyers will likely aim to challenge and secure a position above the $1.68-$1.82 resistance zone. If the price of OP drops below $1, it would signal a shift from its current bullish trend to a bearish one.
OP chart on the H4 timeframe
Check out Gagarin News for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) β a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) β the movement of price between support and resistance levels, without going beyond the given range.
Π β simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart β a support zone.
Red range on the chart β a resistance zone.
Correlation β the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from Gagarin News:
