The Open Network (OP) price has been rallying for several months, culminating in a peak near $3.263 twice. However, in recent weeks the price has been on decline and has possibly broken a longstanding uptrend. This downward correction appears to be driven by the bear-side of the market, which is manifested in the chart with a bearish double-top pattern. The double-top pattern is a standard technical analysis signal, where a price is rejected from a certain level after two (or more) attempts.

This rejection appears to have caused the repeated falsification of the uptrend, and OP has been on a severe decline of around 45%. Although there is currently support at the 200-day exponential moving average (EMA) and consequential hopes of a reversal, there are also some signs that further downward correction is to come. Firstly, an analysis of the relative strength index (RSI) implies that the recent high prices have been overbought. On the other hand, a bearish signal appears to arise from the 20-day EMA crossing below the 50-day EMA, an indicator of the short-term bear pressure. Also, the price appears to be struggling to hold the 50-day EMA, which may hint towards the downward movement continuing.

On top of these technical indicators, there are also two possible levels that reinforce the suggestion of bearish correction. Specifically, there is a potential resistance at $3.000 and potential support at $2.027 and $1.768. As such, OP is forecasted to make a strong downward correction, however, this should be taken with a grain of salt as the current situation is far from definite. As with all investments, it is important to be aware of the risk of financial loss and any decisions should be made with adequate research.



Other News from Today