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- 1 Optimism is on track to resume its amazing rally after a halt in its breakout.
- 2 OP price is expected to break the resistance level and surge, as it is above major EMAs.
OP enables the creation and deployment of dApps that can leverage the scalability and accessibility advantages of optimistic rollups. These dApps could serve various functions, such as financial applications, social networks, games, and more.
Optimism Price Movement Since Launch
The demand and market conditions for Optimism have caused its price to fluctuate significantly. Between June 2022 and February 2023, Optimism’s price soared from $0.40 to $3.20.
However, from the last week of February 2023, OP price dropped drastically, from $3.20 to $1.0. This could be because many Optimism investors chose to sell their assets to book profits.
Since June 2023, Optimism’s price has attempted to rise again several times but came down to $1.2 as resistance was high at $1.67. The market needed something that could affect Optimism price and that factor emerged in the form of the $1.2 support mid-October 2023, which was followed by a bull-run.
OP/USD in Daily Time Frame
Since the beginning of the year, the OP/USD pair has increased by 103.27% on the daily time frame. It had a strong upward movement, but it faced resistance at $1.80, which brought more sellers. The price then moved sideways as the range narrowed on the OP chart until it broke out of it with another surge.
This rally on the OP chart is likely to continue since it has formed a bullish pattern known as a declining wedge in the daily time frame. Bulls are accumulating and preparing to break the resistance level and soar to new heights from the current level.
Currently, the OP price is above all EMAs, and CMP is trading at $1.85 with an intraday surge of 1.75%.
Furthermore, OP might surge strongly from the current level. The next possible target could be $2.20. On the other hand, if it fails and drops, then it could decline to $1.40.
30-Day MVRV (Market Value to Realized Value) Suggests OP Price is Likely to Ascend
The chart shows the relationship between the Optimism crypto price and the MVRV ratio in the last 30 days. The MVRV ratio indicates the average profit or loss of investors who bought Optimism in the last 30 days.
The chart demonstrates that the Optimism price and the MVRV ratio have a positive correlation, which means that they move in the same direction.
When the Optimism price rises, the MVRV ratio also increases, indicating that more investors are making money and may sell. Similarly, when the Optimism price falls, the ratio also decreases, which suggests that more investors are losing money.
Furthermore, this may imply that Optimism is in a stable phase, waiting for another factor or an event to move in either direction.
Summary
The Santiment indicator chart of Optimism shows that its price and the MVRV ratio move together, which means that they have a positive correlation.
Moreover, on the daily time frame, it looks like Optimism is ready to continue its impressive rally after a pause in its breakout. It has formed a bullish pattern known as a falling wedge on the daily chart. This could indicate that the bulls are gaining momentum in Optimism and could drive the price above the resistance level and higher from the current level.
Technical Levels
Support Levels: $1.40
Resistance Levels: $2.20
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.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
