The bullish rally of OP price started after the formation of a support level at $1.18 and infused confidence in the market participants. The cryptocurrency price has been forming higher highs and might face resistance from $1.81.
Recently, the price was stuck in a narrow consolidation zone ranging between $1.42 and $1.59. At the end of July 2023, the price was successful in breaking the consolidation zone and currently trades at $1.737 at the time of writing.
The crypto community noted that OP is one of the altcoins showing strength in the current market condition. The altcoin has highly benefited from the launch of Worldcoin (WLD) which is based on the Optimism protocol. The past 4 candles on the weekly chart have been bullish.
The previous candle closed as a bullish candle with a small body and a long upper wick indicating that bears have started to enter the market. The current candle has broken the high of the previous candle and needs to close above $1.72 to confirm its move toward $1.81.
Network Activity Of Optimism
The daily active addresses of Optimism peaked on 20 July 2023 reaching 161,730 and has currently declined to 127,487. In the past 30 days, daily active addresses have increased by 50.6%. The daily transaction has also increased by 26.2% to 560,387 in the last 30 days. However, on 27 July 2023, the daily transaction escalated to 901,470. Since then, there has been a downfall.
The total value locked has also dropped since 30 July 2023 from $926.94 Million to $876.04 Million. However, the overall TVL has increased by 4.9% in the past 30 days. The daily active addresses, daily transactions and total value locked have shown significant growth in the past 30 days which provides a positive outlook for Optimism.
The decentralized finance took a hit after the recent attack on Curve Finance which is now under control as stated by JP Morgan.
Will OP Price Reach $2 Level?
The cryptocurrency price has climbed above 20,50,100, and the 200-day exponential moving average, indicating bullish momentum dropped below the 0 mark and currently trades at -0.08 suggesting weakness in the market.
Chaikin Money Flow has been trading below the 0 mark since 20 July 2023. The relative strength index trades at 67.68, nearing the overbought zone, implying that the price is in bullish momentum and will soon enter the overbought zone.
The 20-day SMA of Bollinger has been acting as a support and the price has reached the upper band of Bollinger which indicates the possibility of short-term pullback toward the 20-day SMA.
Conclusion
The market structure and price action of Optimism are strongly bullish and would hit $2 if the bulls are successful in pushing the price above $1.81. Bollinger bands are signifying the possibility of a short-term pullback.
Technical Levels
- Major support: $1.18 and $1.42
- Major resistance: $1.81 and $1.90
