Journalist
Posted:
- On-chain data signaled whale accumulation, and heavy dependency on Bitcoin’s movement as OP’s open interest rises.
- An analyst predicted a potential 24% gain if optimism breaks above the ascending triangle pattern following a bullish market sentiment.
As of this month, Optimism [OP] has been trading within an ascending triangle pattern on the 4-hour chart, with its price surging 2.31% in the last 24 hours according to CoinMarketCap data.
Op’s trading volume increased by 21.38% as the token flashes signs of recovery. Will OP break above the $1.18 key resistance and rally above the ascending triangle formation?
Optimism’s technical setup
OP’s price sat on an ascending trendline and was trading at $1.13, at press time.
The uptrend in its ascending triangle suggests a bullish breakout above the $1.19 key resistance level. The ascending support range is $0.91 to $1.10.
Source: TradingView
As the trading volume rises, a breakout with high volume could confirm the bullish momentum.
According to an Analysis shared by Ali Martinez on X (formerly Twitter), the breakout above the ascending triangle could push the price to the $1.28-$1.31 zone, generating a 24% gain.
What do the on-chain metrics reveal?
Looking at the holder’s profitability, the majority (89%) are at a loss, with only 7% sitting on profits, according to IntoTheBlock data. Additionally, whales or large-scale investors hold 83% of Optimism tokens.
When writing, the Exchange Netflow stood at -$1.7 million, suggesting OP has been leaving exchanges lately. This could indicate whale accumulation or short-squeezing to cover positions and limit losses.
With a Bitcoin correlation of 0.93, OP’s price trend is closely tied to BTC price movement.
Source: IntoTheBlock
Is Optimism recovering?
As of this writing, Optimism’s 24-hour Relative Strength Index (RSI) was at 36, and rose to 49 in a 4-hour timeframe, based on Cryptowaves data.
According to Coinanlyze data, OP’s Long-Short Ratio was 2.84, indicating bullish sentiment and potential recovery.
A 0.26% increase in Open Interest signaled renewed bullish sentiment, visible in OP’s ascending triangle pattern formation.
Source: Coinanlyze
Optimism needs to break and sustain above the $1.18 key resistance level, after the breakout of the ascending triangle with high volume, to confirm its bullishness.
However, if it fails to break above this level, the altcoin could retest the support at $1.13, heading toward the $0.90 key support level.
Traders should watch for OP’s next movement inside this formation while monitoring whale activity.
