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Optimism: How whales can take OP to $2.60 soon
The recent market trends have revealed a substantial increase in accumulation by large investors over the past 24 hours, paving the way for an imminent price surge of Optimism (OP). The technical chart is also indicating that OP could reach $2.60, supported by the formation of a golden cross pattern.
Despite its one-month struggle after a 22.34% decline, Optimism has started to recover, showcasing steady gains of 7.92% weekly and 1.70% daily. With renewed buying activity, particularly from large investors, and a notable rise in average transaction value, OP may be poised for a significant rally.
Large transactions have been observed over the past 24 hours, corresponding with a minor price increase. At the time of writing, 277.17 million OP, valued at $501.62 million, were purchased by large investors who hold a substantial portion of the supply. This activity suggests that the mass buying was in favor of OP’s rally, as its price has seen a slight gain.
Moreover, the average transaction size has increased significantly, reaching levels last seen on November 4th. The increase in both average transaction size and large transaction volume indicates substantial bulk purchases of the asset, adding a bullish undertone to the market.
A trade to $2.60 is feasible as a result of this optimistic outlook, with OP potentially rallying by 36.98% before either undergoing price reassessment or continuing its upward movement. On the 4-hour chart, OP was trading within a symmetrical pattern defined by converging support and resistance lines—a bullish setup that has appeared occasionally.
Furthermore, the formation of the golden cross pattern signals a potential high-momentum price push is imminent as trading activity begins to rise. The golden cross occurs when the blue MACD line crosses above the orange signal line. At the time of writing, the MACD line was at -0.001, while the signal line stood at -0.004. If the MACD line moves into positive territory, it may trigger a major price surge.
Lastly, there has been an increase in buyer interest in the derivative market, as indicated by Optimism’s Funding Rate on Coinglass. The Funding Rate tracks the mechanism used to balance price disparities between the spot and futures markets. A positive Funding Rate suggests bullish sentiment, while a negative rate indicates bearish sentiment. At present, the Funding Rate is at 0.00132%, implying that long positions were dominant. This dominance helps maintain price equilibrium and implies that OP’s price may continue rising from its current level.
In summary, recent market trends suggest that large investors are accumulating Optimism, which could lead to a significant price increase. Furthermore, technical analysis indicates that the asset is likely to reach $2.60 in the near future.
Source: ambcrypto.com
