OP Technical Analysis Feb 6

The OP token is signaling in the oversold region with RSI at 21.45 while the MACD histogram continues negative pressure; short-term momentum is weak but rebound potential from oversold conditions is observed.

Trend Status and Momentum Analysis

OP has declined sharply by 19.95% in the last 24 hours to the 0.17 dollar level and stayed within the daily range of 0.16-0.22. Volume reached 226 million dollars, confirming intense selling pressure. The overall trend is strongly downward; price is trading below EMA20 (0.25 dollars) and the Supertrend indicator is giving a bearish signal. Momentum oscillators indicate short-term weakness, while 9 strong levels were detected across multiple timeframes (1D/3D/1W): 1 support/2 resistances on 1D, 1 support/3 resistances on 3D, and 2 supports/2 resistances confluence on 1W. This structure reinforces downward momentum dominance but the RSI’s oversold region leaves the door open for a potential momentum shift. Volume increase confirms the distribution pattern; buyers have not yet entered.

RSI Indicator: Buy or Sell?

RSI Divergence Analysis

RSI (14) is currently at 21.45 and positioned deep in the classic oversold region (below 30). No regular bearish divergence is observed in the recent price decline; as price makes lower lows, RSI is also testing similar low levels, indicating synchronized momentum in the selling direction. However, hidden bullish divergence signals may be starting to form: While price holds near 0.16 dollar supports, RSI is drawing higher bottoms at the lows, which can be interpreted as a sign of weakening in the downtrend. Confirmation of divergence requires RSI to break above 30 with volume support. For now, the divergence is insufficient to reverse momentum.

Overbought/Oversold Regions

The oversold region (20-30 range) was triggered as price approaches the 0.1579 support level (score 74/100). Historically, OP RSI readings below 20 have triggered 20-30% rebound rallies; for example, quick recoveries occurred at similar levels. However, in the current bearish trend, this oversold condition could turn into a trap if BTC dominance increases. RSI rotation toward 50 will be the first momentum improvement signal.

MACD Signals and Histogram Dynamics

MACD is bearish; the signal line is below the MACD line and the histogram is expanding with negative bars. In the last 24 hours, the histogram depth has increased, confirming selling momentum – bars are longer and more negative, symbolizing accelerating decline. The signal line crossover downward was completed and there is no divergence; as price falls, MACD is also making lower highs. Histogram contraction (approaching the zero line) could signal momentum exhaustion and precede a potential bullish crossover. If confirmed with volume, a test of 0.1820 resistance (score 67/100) may come. For now, negative histogram pressure dominates and breaking 0.1972 resistance (score 66/100) looks difficult.

EMA Systems and Trend Strength

Short-Term EMAs

Price is stuck below EMA20 (0.25 dollars), clearly indicating a short-term bearish trend. The EMA ribbon (8-21-50) is sloping downward and compressed; no ribbon expansion, showing reduced momentum strength. Price approaching EMA8 (around 0.19) will be the first rebound test. Short-term EMA dynamics support the selling trend but contradict the oversold RSI.

Medium/Long-Term EMA Supports

Medium-term EMA50 (around 0.28) forms strong resistance; reaching there requires momentum confluence. Long-term EMA200 (above 0.35) is the main trend support – breaking it activates bearish targets (0.0354, score 22). Ribbon dynamics confirm the EMAs’ death cross; trend strength measurement is at low levels. For upward strength, EMA21 breakout and ribbon fan expansion are expected.

Bitcoin Correlation

BTC is at 62,951 dollars with a 13.80% decline in downtrend; Supertrend bearish and main supports in the 62,345-48,392-41,107 band. OP shows high correlation with BTC (generally 0.85+); BTC weakness is amplified in altcoins. If BTC cannot break 66,554 resistance, additional pressure may come to OP as dominance increase crushes alts. If BTC recovers (70,763 target), OP bullish target opens to 0.3268 (score 38). Key BTC levels to watch: Support break pushes OP to 0.1579, resistance pass brings momentum rally. Check detailed data in OP Spot Analysis and OP Futures Analysis.

Momentum Outcome and Expectations

Momentum oscillators confluence is bearish: Although RSI is oversold, divergence is weak, MACD histogram is expanding, EMA ribbon is downward sloping, and volume confirms sales. Short-term, 0.1579 support is critical; if held, rotation to 0.1820-0.1972 resistances may come from RSI rebound. As long as BTC downtrend continues, optimism in OP remains limited – momentum strength measurement is low, no accumulation patterns. Long-term, MTF support confluence (especially 1W) offers recovery hope, but bearish targets dominate. Momentum traders should watch histogram contraction and RSI 30 breakout; big moves without volume confirmation are risky. Overall outlook is weak momentum balanced by potential oversold bounce.