Optimism (OP) has recently captured the attention of cryptocurrency enthusiasts with its strong upward movement, signaling a potential bullish breakout. Leading crypto analyst Michaël van de Poppe has identified a noteworthy bullish divergence: while the price is making lower lows, the Relative Strength Index (RSI) is recording higher lows. This classic pattern often indicates the potential for upward momentum, suggesting that OP could be gearing up for a significant rally.
Key Resistance Level And Potential Gains
According to van de Poppe, the crucial resistance level to watch for OP is 3000 sats. A successful break above this level could pave the way for a bullish rally, potentially reaching the target range of 4500-5000 sats. On the flip side, the 2000-2150 sats range has proven to be a reliable support zone, with the price consistently bouncing off this level. While the recent rally has returned the price to key levels, any failure to breach the resistance could result in further consolidation, leaving traders on edge.
Volatility in Price Action
The price action for Optimism remains volatile, as reflected in the Bollinger Bands on the 4-hour chart. Recently, the price touched the upper band at around $1.85, marking it as immediate resistance. In contrast, the middle band at $1.76 serves as dynamic support, illustrating the delicate balance OP is currently navigating. Traders should also note the Moving Average Convergence Divergence (MACD) indicators, which are signaling a potential bearish crossover, suggesting that bullish momentum may be waning.
Adding to the complexity, the RSI stands at a neutral 51.24, indicating that the market is neither overbought nor oversold. With these mixed signals, further consolidation seems likely unless a strong breakout occurs in the near future.
Recent data highlights a promising trend in OP token flow. As of October 1st, OP tokens are increasingly being moved off exchanges, indicating possible accumulation by investors. Spot exchanges recorded net outflows of $634.09K, suggesting a growing number of tokens are being withdrawn rather than deposited. This trend typically signals reduced selling pressure and could reflect investor anticipation of future gains.
Historically, negative netflows have been associated with price accumulation, as investors hold onto their assets instead of selling. However, a significant surge in inflows could introduce renewed selling pressure, potentially hindering OP’s upward movement.
Surge in Network Activity
In addition to positive token flow, network activity for Optimism is on the rise. Data from IntoTheBlock shows that as of September 30th, the total number of OP addresses reached 11.13k, which includes 1.56k new addresses and 7.94k active addresses. Notably, the increase of 29.37% in new addresses over the past week indicates growing interest in the OP token. Active addresses also rose by 12.79%, showcasing increased user engagement with the network.
Also Read: LUNC Price Soars 9.46% – Binance Burn Event And USTC Proposal Ignite Investor Optimism
Moreover, the growth of zero-balance addresses—those with no tokens—by 31.02% suggests that users may be preparing for future transactions or moving assets off-chain. This uptick in address activity underscores the ongoing engagement with the OP network, highlighting its potential for attracting new users.
As of press time, Optimism [OP] is trading at $1.85, with a 24-hour trading volume of $224,485,832, reflecting a 2.28% price increase over the last 24 hours and a 10.77% increase in the past week. These metrics suggest that despite the overall volatility in the cryptocurrency market, Optimism continues to maintain strong market interest. With crucial resistance levels and increasing network activity, traders and investors alike will be watching closely to see if OP can capitalize on its current momentum for a bullish breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
