• Arbitrum price has rallied nearly 50% in the last five days despite Bitcoin’s correction.
  • This move is likely to catalyze a massive rally in the next hyped Layer 2 token and ARB’s competitor Optimism. 
  • OP holders can expect the token to rally nearly 60% to $4.11. 

With Arbitrum’s ARB exploding in the last week, things are starting to heat up for altcoins, especially the Layer 2 tokens. With the decline in Bitcoin dominance and capital rotation, altcoins could start to surge soon.

Also read: Ethereum and altcoins gear up for alt season with this move in Bitcoin dominance

Recipe for alt season

A decline in Bitcoin dominance indicates that capital is moving away from BTC to other altcoins. In a way, it denotes a rotation of capital, aka profits, into other riskier assets. This is why the chart attached below shows a slow uptick in altcoin dominance. 

BTC vs Altcoin dominance chart

BTC vs Altcoin dominance chart

In addition to the rise in altcoin dominance, investors should note that profits from Arbitrum have a high potential to rotate into other top Layer 2 tokens like Optimism and MATIC. So, the next section will take a look at Optimism price and what to expect from it.

Also read: Here are top three altcoin categories that are likely to pump the hardest in the 2023 alt season

Optimism price ready to explode

Optimism price is attempting to overcome a hurdle around $2.73 and is looking primed for a breakout. A decisive close above $2.73 is likely to open up a path for OP to rally to the next hurdle at the 61.8% Fibonacci retracement level at $3.21, which is where the altcoin formed a local top in February 2023.

Overcoming this level would propel Optimism price to the next critical level at $4.11. In total, this move would constitute a 51% gain from the current position at $2.70. 

OP/USDT 1-day chart

OP/USDT 1-day chart

A daily candlestick close below the $2.18 level will create a lower low and invalidate the bullish thesis for Optimism price. In such a case, OP could slide lower and tag the $1.76 support floor. 


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