$OP – 4H Rejection Signals Potential Move Lower.
A clear rejection on the 4-hour candle close for Optimism (OP) suggests that buyers are struggling to maintain control, opening the door for a potential continuation to the downside. Price action tapped the higher liquidity area but failed to sustain momentum, leaving the market vulnerable to a deeper retracement.
Trade Setup: SHORT
Entry Zone: 0.11778 – 0.11840
Stop Loss: 0.11997
Targets:
TP1: 0.11621
TP2: 0.11559
TP3: 0.11434
Why This Setup?
OP recently pushed into a premium pricing zone, where selling pressure tends to increase. The latest 4H candle rejection indicates that this area is being defended by sellers, preventing further upside continuation.
The 0.11809 support level now appears increasingly fragile. If price loses this level with conviction, it could trigger a cascade toward the nearby liquidity pools sitting below current price.
Market structure also hints at weakening bullish momentum, with lower highs beginning to form after the rejection. This typically signals that sellers are regaining control of the short-term trend.
Outlook:
As long as 0.11997 remains intact, the bearish bias stays valid. A breakdown beneath the current support zone could accelerate the move lower, targeting the 0.11621 region first, followed by deeper liquidity pockets near 0.11559 and 0.11434.
