- The OP price has increased by over 15% in the last seven days.
- A positive divergence has formed, suggesting a potential upswing ahead.
Optimism (OP) crypto, the Layer-2 network built on the Ethereum blockchain, has shown a bounce this week, revealing accumulation. Despite the bounce, OP still trades in a tight range, but it attempts to break out.
This week, OP Crypto has started to deliver signs of bullish cues and gained momentum. Rising by over 15%, the OP price has climbed above the 20-day EMA mark and is set to skyrocket gains in the coming sessions.
As evidenced by the RSI, a bullish divergence pattern is formed, which indicates a short-term rise is intact. Along with RSI, the price action signified the increase in buying pressure and a volume surge.
Will Triple Bottom Pattern Cause OP Crypto Trend Reversal?
The OP crypto chart showed a triple bottom formation near the $1.20 mark during the daily time frame. Following the base buildup, the token accumulated significantly and bounced off the support.
Optimism crypto was trading at $1.43 at press time, up by over 2.11%, showing a slight upswing in the intraday session. With a market cap of $305.97 Million, the token ranks at 45th position.
The RSI has generated a bullish divergence throughout the triple bottom pattern. This is a situation when an asset price decrease accompanies a momentum decrease. It is a sign that often precedes bullish trend reversals.
In his tweet, Crypto Analyst @CryptoMichNL mentioned that Ethereum-based altcoins are doing slightly well. OP crypto has significantly revived from its bottom and is poised to rise in the coming sessions.
Ethereum #altcoins aren’t doing bad, as $OP is currently up from the lows.
— Michaël van de Poppe (@CryptoMichNL) September 7, 2024
However, on the larger scale, it’s currently down substantially and it’s back to the lows.
I’m expecting a lot more upside to come on this one once EigenLayer comes into action. pic.twitter.com/xjAExjK6by
A daily close above the $1.70 mark will validate the breakout of the triple bottom pattern, also leading to a bullish uptrend.
The daily RSI line crossed the 50 mark when writing, triggering an upward move. It indicated that bulls have an advantage, and a potential uptrend can be seen in the following sessions.
Total Value Locked (TVL) Witnessed a Decline
According to DefiLlama, Optimism’s Total Value Locked (TVL) reached its yearly high of $1.01 Billion on March 18. Afterward, the Optimism crypto’s TVL continued to drop and decreased to $564.62 Million at press time.
If the TVL decreases, it implies that market participants are withdrawing previously locked tokens. Hence, the OP price could decline.
Active Addresses Data Noted An Uptick
The Active Addresses estimate the number of users; if the value increases, it implies an increased interaction. Following the price increase, the data of the token’s active addresses witnessed a rise, revealing the investors’ adoption.
Meanwhile, the development activity data stayed capped at around 68. It represented the constant growth of the ecosystem.
Adding to the bullish outlook, the OBV indicator highlighted the market’s favorable structure and signaled a significant reversal.
Moreover, the consistent positive value of the OI-weighted funding rate implied that traders have been making long positions. It is a sign of an uptrend.
When writing, the token’s funding rate was noted at +0.0080%, underlining the positive market sentiment.
If the buying pressure continues, OP crypto price could gradually rise, potentially reaching the $1.60 mark. A major resistance to watch out is close to the $1.80 mark. However, if the token is rejected at $1.50, the downside support levels are around $1.25, followed by $1.10.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
