Optimism [OP] has been making waves in the cryptocurrency market as on-chain data points towards whale accumulation and a strong dependency on Bitcoin’s movements. With the token trading within an ascending triangle pattern on the 4-hour chart, there is optimism for a potential 24% gain if the bullish sentiment continues.
At the time of writing, OP’s price was sitting at $1.13, with the price action indicating a possible breakout above the $1.19 key resistance level. The ascending support range is between $0.91 and $1.10, signaling a bullish momentum if the breakout occurs with high volume.
Analyst Ali Martinez shared insights that a breakout above the ascending triangle pattern could propel OP’s price to the $1.28-$1.31 zone, generating a substantial 24% gain for investors. This positive outlook is further supported by a rise in trading volume, hinting at a potential bullish trend ahead.
On the on-chain metrics front, it is observed that the majority of holders are currently at a loss, with only a small percentage holding profits. Additionally, large-scale investors hold a significant portion of Optimism tokens, indicating potential whale accumulation.
The Exchange Netflow data suggests that OP has been leaving exchanges recently, which could further validate the theory of whale accumulation or short-squeezing to cover positions and limit losses. Moreover, with a strong correlation of 0.93 with Bitcoin, OP’s price trend closely follows the movements of the leading cryptocurrency.
As for the technical indicators, Optimism’s 24-hour Relative Strength Index (RSI) stands at 36, showing signs of recovery and potential upside. The Long-Short Ratio is also bullish at 2.84, pointing towards a positive sentiment among traders. A 0.26% increase in Open Interest further reinforces the renewed bullish sentiment in the market.
In conclusion, Optimism needs to break and sustain above the $1.18 key resistance level to confirm its bullishness. However, failure to do so could see the token retesting support at $1.13 and potentially heading towards the $0.90 key support level. Traders are advised to closely monitor OP’s movements within the ascending triangle pattern and keep an eye on whale activity for further insights into market sentiment.