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Optimism Price Prediction As $OP Exits 200-Day Accumulation to Pursue $2.6 Target

source-logo  coingape.com 08 December 2023 16:07, UTC

Optimism Price Prediction: The Optimism (OP) coin has experienced a significant shift in its price dynamics over the past month. Initially trading within a range defined by two converging trendlines, this period of consolidation, while reflecting uncertainty among market participants, was revealed in the daily timeframe chart as a flag pattern. Such a pattern is typically indicative of an upcoming continuation of an uptrend. Consequently, a recent breakout from this pattern and a key resistance level suggests that the OP price is poised to ascend to higher levels.

Also Read: Bitcoin ETF: Grayscale CEO Drives Optimism For Swift Approval

Has OP Recovery Hit $2.5?

  • Flag pattern breakout set the OP price 25% upsurge
  • A bullish crossover between the 100-and-200-day could give additional confirmation for buyers
  • The intraday trading volume in OP is $726 Million, indicating a 405% gain.
Optimism Price Prediction
Optimism Price Prediction| TradingView Chart

This bullish reversal pattern, identified during the recovery phase from mid-October to November, followed by a consolidation phase, indicates a strategic pause allowing buyers to regroup and reinforce the bullish momentum.

The market sentiment shifted positively on December 7, leading to a substantial 26% surge in OP price and a decisive breakout from the pattern’s overhead trendline. At present, the Optimism price is trading at around $2.133, attempting to maintain its stance above the breached resistances.

Should the coin’s price remain stable above the $1.93 mark, there is potential for a further 25% increase, targeting a price of $2.66.

Is Optimism Coin Ready for Recovery?

From mid-May to early December of 2023, the Optimism coin predominantly exhibited a sideways trend, with the price oscillating below the $1.9 resistance level. This phase likely represented an accumulation period, where buyers capitalized on lower prices to acquire the asset. The notable breakout on December 7 marked a departure from this sideways trend, signaling a potential trend reversal and a stronger confirmation of an ongoing recovery.

  • Average Directional Index: The upticks in ADX slope around 20% accentuate buyers have the potential to prolong the recovery trend.
  • Exponential Moving Average: the 50-day EMA offers strong pullback support amid market correction