• Optimism price is coiling up for a breakout amid a recent bullish move by venture capital a16z.
  • OP could rally 25% to $2.807, escaping a formidable supplier congestion zone.
  • A daily candlestick close below the $1.994 support level could invalidate the bullish thesis.

Optimism price (OP) engaged a gains-shedding gear in mid-April as bears took over the market following waning bullish momentum. However, bulls appear to have regained control in the New York trading session, commencing what seems to be the beginning of a trend reversal. This comes amid ongoing network hype after venture capital firm (VC) Andreessen Horowitz (a16z) disclosed plans to work on an Optimism-based rollup application christened Magi.

Based on an announcement posted by crypto engineer Noah Citron, Magi will be a roll-up client for Optimism’s OP stack. It is still latent and months away from being ready for release into the market.  OP stack is the standardized, open-source development stack powering Optimism, presented as a system written in the Rust programming language. It is a faster alternative to the only existing rollup client maintained by OP Labs and written in the Go programming language, op-node. According to a16z, the number of systems is directly proportional to the degree of robust decentralization for Optimism. 

Optimism price eyes 25% gains

Optimism price is up over 3% in the last 24 hours, with CoinMarketCap data showing a 41% increase in trading volume over the same timeframe. This indicates growing demand for OP as it is healthy and viable.

If bullish momentum increases, the Optimism price could rise above the 100- and 50-day Exponential Moving Averages (EMA) at $2.236 and $2.383, respectively. These were crucial supplier congestion zones; therefore, bulls could leverage them in reentering the OP market.

Beyond the levels, the Optimism price could exceed the psychological $2.787 and escape the multi-month consolidation zone. In highly ambitious cases, OP could tag $3.114, constituting a 40% uptick from current levels.

OP/USDT 1-day chart

On the other hand, if sellers dominate, Optimism price could repel the 100-day EMA toward the immediate support at $1.994. A daily candlestick close below this level could invalidate the bullish outlook.

Also Read: After Arbitrum’s 50% rally, is Optimism (OP) next Layer 2 altcoin to explode?


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP