Following a recent 22.34% drop, Optimism [OP] has started to bounce back, exhibiting consistent weekly gains of 7.92% and daily increases of 1.70%.
The resurgence in buying interest, especially from major investors, coupled with a significant uptick in average transaction value, suggests that OP might be gearing up for a substantial upswing.
Noteworthy Intervention from Major Players
The market has observed a surge in large OP transactions in the past day, aligning with a minor uptick in price.
As of now, big investors have acquired 277.17 million OP tokens worth $501.62 million, holding a considerable share of the token’s supply.
This activity suggests that the significant buying was in favor of driving up OP’s value, leading to a modest price appreciation.
Moreover, the average transaction size has notably spiked, reaching levels similar to those seen on November 4th, standing at $20,697.00 over the past 24 hours.
The uptrend in both the average transaction size and the volume of large transactions signals substantial bulk acquisitions of the asset, bolstering a positive outlook for the market.
Aiming for $2.60 as the Next Milestone
The optimistic trajectory remains evident on the charts as of the current moment, with OP trading in an accumulation pattern and forming a golden cross pattern.
On the 4-hour chart, OP is moving within a symmetrical pattern outlined by converging support and resistance lines—a bullish setup that emerges periodically.
In the event of an anticipated breakout, OP could surge by 36.98%, hitting $2.616 before a potential price reassessment or continuation of its upward trend.
Simultaneously, the emergence of the golden cross pattern hints at an imminent high-momentum price surge as trading activity picks up pace.
The golden cross materializes when the blue MACD line crosses above the orange signal line. At present, the MACD line registers at -0.001, while the signal line is at -0.004.
A movement of the MACD line into positive territory could catalyze a substantial price upswing.
Growing Interest in Derivative Trading
Currently, there is a surge in buyer interest in derivative markets for OP, as indicated by the Funding Rate on Coinglass.
The Funding Rate monitors the mechanism employed to balance price differentials between spot and futures markets. A positive Funding Rate signifies a bullish market sentiment, while a negative rate signals a bearish outlook.
As of now, the Funding Rate stands at 0.00132%, indicating a dominance of long positions. This dominance aids in maintaining price stability and hints at a potential continuation of OP’s price ascent from its current position.