Optimism (OP) Poised For A Rally? Expert Suggests Bullish Potential

• Optimism has been down by more than 13.98% for the day.
• Optimism technical analysis indicated a solid rise in the price.
• Analyst Ali has forecasted a recurrence of OP’s last bull cycle.

Optimism (OP) is an Ethereum scaling layer 2 solution. It has again drawn the attention of cryptocurrency market expert Ali Martinez. He has forecasted bullishness in the token price.

According to Ali, OP is catching a group of chart patterns often linked to the break of a possible rally, as it has done in past cycles. He has focused on OP’s propensity to create bullish ascending triangles during market bottoms. Frequently notable price increases may then follow up on that.

According to technical analysis, the OP price is currently creating another ascending triangle pattern that a trend reversal and breakout surge will inevitably accompany. Based on this, Ali thinks OP might rise to a highly bullish $7.20 level.

Additionally, it is near the hotspot frequently observed in technical charting, the 1.618 Fibonacci retracement level. It may also result in a 340% return for OP and could draw traders and investors.

Optimism Faces Sharp Decline

Despite the optimistic long-term outlook, the Optimism (OP) token price has declined rapidly. It has lost over 10% in a single day and fallen from its previous highs. When writing, the OP price was trading at around $1.54.

This token’s market sentiment has suffered. Moreover, the OP market capitalization and trade volume have been declining. Around $2 Billion is the market capitalization, and $678.70 Million is the 24-hour trading volume of the token.

Although the sell-off represents a general market correction, Ali thinks the decline can indicate OP’s bottoming process.

The pattern has rallied to approach support before breaking out. Ali has noted that similar pullbacks frequently occur when an ascending triangle forms. In this instance, activity around the triangle’s bottom limit can be advantageous for buyers in the hopes of a rally.

Technical Indicators Point to a Potential Rally for the OP Coin

Due to tracking Fibonacci retracement levels, Optimism technical indicators have historically indicated that it may approach a significant price move. Testing the 1.618 Fibonacci extension was necessary when the OP crypto had broken out of this configuration.

Ali’s chart further supports that tendency. The Optimism (OP) token price has recovered after consolidating in rising triangles and moving into the critical Fibonacci resistance levels.

Several occurrences of being on similar patterns at or near 1.618 Fibonacci are displayed in the accompanying chart. These historical trends show that Ali’s prediction of Optimism reaching the $7.20 mark is correct. That’s because we have also reached these levels when the token broke out of rising triangles.

The 1.618 Fibonacci extension is a highly realistic take-profit objective for traders and investors seeking it as a possible profit goal. According to technical analysis, there is a bit of resistance. As the price breaks below the rising channel, the most recent set of red candlestick patterns illustrates this.

However, the ADX reading of 21.41 showed that the Optimism(OP) price is consolidating and is in a low trend strength period. The ADX will rise if the OP token price breaks out and momentum becomes stronger. That would indicate a strong upward trend and validate the ascending triangle.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.