- Optimism (OP) hits a new all-time high at $4.13 and targets $6, signaling a potential 62% price rally.
- OP has been trading in an ascending channel since May 2022, showing consistently higher highs and higher lows.
Optimism (OP) has been making headlines lately with its impressive price performance. Recently, OP surged to a new all-time high (ATH) of $4.13, leaving many investors and analysts intrigued about its future potential.
Since its establishment in May 2022, OP has experienced many ups and downs. It fell precipitously, 71%, to a low of $0.396 in mid-June 2022, partially as a result of the implosion of Terra. However, the cryptocurrency market is notorious for being unpredictable, as OP demonstrated when it made an incredible recovery and shot up to $2.243 in August 2022, up 466%.
Ascending Parallel Channel Signals Optimism
Despite the volatility and price fluctuations, OP’s price moves have been relatively stable. Based on chart data analyzed by technical expert Ali Martinez, OP has been trading in an ascending parallel channel since May 2022. This pattern suggests that the token has continuously registered greater and lower highs.
#Optimism is in price discovery mode! The 3-day chart suggests an ascending parallel channel drives the $OP price action.
With this pattern in play, #OP might be setting its sights on the channel’s upper boundary, potentially targeting around $6. pic.twitter.com/vSlf4Vcu1F
— Ali (@ali_charts) December 27, 2023
As per Ali Martinez, OP is presently in a state known as price discovery mode, wherein the market actively determines the token’s value. During these stages, volatility frequently rises as buyers and sellers evaluate the token’s value according to several variables. According to the dominant ascending parallel channel, OP might continue to rise.
OP broke over the middle border of the ascending parallel channel during the most recent rally, which started in October during a wider market rebound, setting a new ATH of $4.13. Analyst Ali Martinez has set a target price of $6 for OP, indicating a possible 62% gain and a new all-time high due to this positive trend.
OP has maintained support levels above $3.698 in the short run despite a recent decline from $4.13. Still, it is currently down 1% as selling pressure increases. With a 30% jump in volume to $970,055,817, OP now commands the 15th greatest 24-hour transaction volume.
Growing On-Chain Adoption
The increasing uptake of OP seen in on-chain transaction data is a significant sign of its potential. There are now more active addresses, which suggests that people are becoming more involved and interested in the OP network. It increased threefold in a single day, from a low of 10,000 on December 21 to an astounding 31,400 on December 22. Although it has since dropped, the 7-day average shows an astounding 122% rise.
There is a discernible pattern in the quantity of transactions. It peaked at around 64,000 transactions on December 22 after declining to about 10,000 in October. It declined to 40,000 transactions briefly in the following days, but it has since increased to 57,000 and is still growing.
Price Analysis and Future Scenarios
According to the price analysis, OP encountered resistance at $4.155, which caused a roughly 16% decline. A rising red histogram on the MACD indicator indicates more selling pressure in the market. In addition, the moving averages show a downward trend, suggesting that the price may drop even lower.
But there are two possible outcomes to think about. Bulls may retake the lead and retest the resistance at $4.155 over the weekend if the market can keep the price above the $3.50 support level. If OP stays at this level, it might keep rising toward the $4.5 upper resistance level.
Conversely, if bears exert dominance, the price may fall and test the support level of $2.991. Should the bearish trend persist, OP might descend further, aiming to test its lower support level at $2.411.
