- 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
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.