Optimism (OP) Token Price Achieved $4.090 Level; What’s Ahead?

• The OP token price formed a small Double-U pattern at the $2.819 level.
• The OP price is moving in an uptrend as per the technicals.

Optimism (OP) is a layer-two blockchain on top of Ethereum with over $500 Million in TVL. The blockchain benefits from the security of the Ethereum mainnet. It also helps in scaling the Ethereum ecosystem by using optimistic rollups. Optimism is home to 97 protocols, the biggest being Synthetix (SNX), a derivatives exchange, Uniswap (UNI), a DEX, Velodrome (VELO), and AMM.

OP Token Price Pumped Almost 24% During the Monthly Session

OP token price has given a breakout from a major trendline in November 2023. Subsequently, the price faced resistance at the $1.821 level and consolidated for a certain period until it broke out from that resistance.

Alternatively, the OP token price had a major change of character during this breakout. Afterward, the price pumped more than 140%, forming a decisional interest point during this rally. It also breaks above the $2.819 resistance level.

The $2.819 resistance level is serving as a demand zone for the current rally, which is moving toward the $4.320 resistance level. The price surged over 50% from the $2.819 demand level, making it a strong support.

Moreover, the OP token price is performing 16.59% below its all-time high level. The all-time high level is at the $4.57 level. OP 24-hour trading volume has advanced by 34.69%, ranked 50th out of 8865 active cryptocurrencies.

Technical Analysis of the OP Token Price

OP token price is moving above the 50-day and the 200-day EMAs, reflecting an uptrend. Earlier, both the EMAs had a bullish crossover with each other at $1.505, which also boosted the bullish sentiments.

The OP token price is facing resistance from the $4.320 resistance level. It performed a smaller change in character at the current trading phase. It can lead to a short-term fall toward the breakout level of the Double-U pattern at $3.197.

At press time, the Optimism token price is trading at the $3.777 level. It is moving toward the $3.197 level, which can soon serve as a demand level. If the OP token price closes above the $4.320 resistance level, it may reach the $5.255 level.

Alternatively, the relative strength index (RSI) slope reflects a bearish divergence at the current trading phase. However, the slope took support on the 50-mark middle band, which can lead to a change in upward momentum.

Conclusion

Lastly, the OP token price has been moving in an uptrend since the breakout of the trendline forming below. The price faces resistance multiple times from the $4.090 level. The price is moving toward the breakout level of a double-U pattern. The level can possibly reverse the price toward the $5.255.

Technical Levels

• Resistance Levels: $4.320 and $5.255
• Support Levels: $3.197 and $2.624

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading stocks and crypto comes with a risk of financial loss.