In the world of cryptocurrency, Michaël van de Poppe, a passionate supporter, has foreseen a potential breakthrough for Optimism [OP]. He believes that Layer 2 networks like OP are on the brink of a significant uptrend, with the asset potentially climbing by 60% once it surpasses a crucial resistance level.
Van de Poppe emphasized the increasing momentum in Layer 2 ecosystems, which are taking cues from successful Layer 1 projects that have already experienced substantial growth.
The current resistance level for Optimism stands at $1.83, and the price is currently consolidating just under this threshold. Van de Poppe has indicated that once this barrier is crossed, OP could experience a rapid upward movement towards higher price targets.
Price Movement and Important Levels to Monitor
Current market data shows that OP is trading at $1.77, reflecting a 1.35% rise in the last 24 hours. Despite this short-term increase, the asset has faced a 1.30% decline over the past week, struggling to break through the $1.83 resistance level.
Sellers have consistently defended this level, creating a narrow price range between $1.70 and $1.83.
From a technical perspective, $1.70 is viewed as a critical support level that could provide stability during price retracements. On the upside, a breakout above $1.83 could pave the way for a rally towards the next significant resistance at $2.00.
Furthermore, some analysts are looking towards a potential target range between $3.25 and $3.50 if the overall market conditions remain favorable.
Technical Signals Point to Varied Momentum
At present, the Relative Strength Index (RSI) for OP is at 55.07, indicating a moderate bullish trend. This level suggests that the asset is not yet in an overbought state, leaving room for further upward movement.
Nevertheless, a decline in RSI could hint at weakening bullish momentum, potentially leading to a retest of lower support levels around $1.70.
The Moving Average Convergence Divergence (MACD) indicator offers a more optimistic viewpoint, with the MACD line remaining above the signal line.
Positive histogram bars indicate that buying pressure persists, although a narrowing histogram implies that momentum might be waning.
Ownership Statistics and Trading Activity
Analysis of on-chain data reveals that 50% of OP holders are currently in a profitable position, while 41% are experiencing losses, showcasing a balanced distribution of market positions.
The data also highlights a substantial 84% concentration of major holders, underscoring the significant influence of whales on OP’s price movements.
Market activity has been vigorous, with large transactions totaling $1.25 billion over the past week. Additionally, net exchange inflows amounted to $366,040, indicating heightened trading activity and potential accumulation by market participants.
The correlation between OP and Bitcoin stands at 0.42, indicating a certain level of correlation with broader market trends.