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Optimism Price Made Bottom Around $2, Can Bulls Dominate Ahead?

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The native token of Optimism, OP price has flipped its direction and reflects signs of accumulation this week. Over the past weeks, the token has been in a correction phase, dragging over 30% of gains in April.

The Optimism price retested its strong support mark of $2 and hovered in the bearish trajectory. Amidst the negative sentiments in the crypto market, most of the altcoins have eroded gains and displayed significant correction in the past trading sessions.

At press time, the Optimism token (OP) price traded at $2.47 with an intraday gain of 3.20%, reflecting buyer accumulation this week. It has a monthly return ratio of -27.20% and 22.30% yearly. 

The pair of OP/BTC is at 0.0000432 BTC, and the market cap is $530 million. Analysts are neutral and suggest OP crypto may retain its strength and outperform in the upcoming sessions.

Optimism Price Signifies Retracement, What Price Action Indicates?

Since the beginning of 2024, the OP token has been in solid momentum and reached the top around $5. Afterward, the buyers did not hold gains, and the token regressed gains slowly & steadily, which led the token to retest its demand region near $2.

On the daily charts, the Optimism token reversed its direction, regressed from the supply region of $5, and displayed retracement.

This week, the Optimism token picked momentum and made a rising channel formation, breached the downward trendline mark of $2.40. The momentum indicator “RSI” signifies a positive crossover, and the curve flips from the oversold region and heads toward the midline region.

Optimism Price To Volume Profile On Daily Charts

The intraday trading volume jumped over 65.45% to $463.71 million, and buying momentum was displayed on the charts. The short covering may trigger ahead if the buyers succeed in crossing the $3 mark.

However, the trend is neutral, and the token needs to sustain gains above the 20-day EMA to stretch the pullback.

Price Volatility and Weighted Sentiment Outlook

Following the price rebound, the price volatility curve spiked over 5.37% to 0.039 and displayed investor interest this week. 

However, the total weighted sentiment replicates a neutral outlook, and the value stayed below the midline at around -0.765.

What Do Development Activity and Derivative Data Highlight?

Per the Santiment data, the development activity data highlighted a consistent up move and reached 558, replicating a positive outlook. 

Similarly, the derivative data showcased prolonged buildup activity, and the open interest jumped over 1.89% to $102.67 Million in the intraday session.

Per the Fibonacci retracement levels, the OP price trades near the 38.2% resistance mark and has retained the mid-Bollinger Band. The total supply of Optimism crypto is 4.29 billion, whereas the volume-to-market cap ratio is 0.865, ranked 123 in the global crypto market cap.

Summary

The Optimism price signifies a rebound from the support mark of $2 and picked momentum in the last sessions. A break and close above the $3 mark would validate a trend reversal ahead.

Technical Levels

Support Levels: $2.20 and $2

Resistance Levels: $3 and $3.30

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. 

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