Open Network (OP) has seen a 1.45% increase in price over the past 24 hours and is currently trading at $2.269. However, the bears are attempting to take control of the OP price action, and it is likely that the price may make a bearish correction in the near future.
After facing rejection from the price of $3.263 twice, OP made a bearish double-top pattern, followed by a lower low. The double-top is an M-shaped bearish reversal pattern that is often seen at the top of a trend. In this pattern, a price after making a higher high takes rejection from the previous resistance level. This indicates that the buyers are refusing to support the price above the rejection point, which is often followed by a sharp downfall. At this point, the sellers start taking over the price action.
The OP price is making a bearish reversal on the daily timeframe. After taking support from $1.000, the price made a bullish rally and started trading on an uptrend. However, after making an extremely bullish rally, the price took rejection from $3.263 and made a bearish correction of 35%. The OP price made another attempt to cross above the resistance level but did not succeed.
From that point, the price made a severe downfall of 45%, breaking the previous bull trend by making a lower low pattern. Subsequently, the OP price made a lower high which might be followed by a lower low. Although OP price has major support below the current level in the form of 200 EMA.
According to technical analysis on the 1 day timeframe, the RSI line after reaching the overbought level in early January started making a divergence from the price action. Where the price was making a higher high and higher low, the RSI line was making a lower high and lower low, which is a bearish reversal signal. After this, Open Network price broke its bull trend near early March when the RSI line crossed below the median line. The current RSI value is 46.72 points, which is taking resistance from the 14 SMA around 46.98 points.
The Open Network price is currently trading above the 200 EMA, which is a critical EMA line that indicates whether the particular price action is on a bull or bear trend. According to this, the OP price is currently trading on the overall bull trend. However, both the price action and indicators are suggesting that Open Network price can take a bearish correction. The 20 EMA has recently crossed below 50 EMA, whereas Open Network is also taking resistance from 50 EMA. This may cause the price to drop by 21%.
According to technical levels, the support level is between $2.027 to $1.768, while the resistance level is between $3.000 to $2.600.
It is important to note that investing in or trading crypto assets comes with a risk of financial loss. Therefore, the views and opinions stated in this article for informational purposes only and do not establish financial, investment, or other advice.
