OP is seeing a price increase as the market appears to be in line with the upcoming major bullish momentum.
There has been an increase in accumulation by large investors over the past 24 hours.
The technical chart suggests that OP could reach $2.60, supported by the formation of a golden cross pattern.
Despite struggling for a month after dropping 22.34%, Optimism [OP] has started to recover, showing steady gains of 7.92% weekly and 1.70% daily.
With renewed buying activity, especially from large investors, and a significant increase in average transaction value, OP may be ready for a major uptick.
Major investors step in
The market has seen a spike in large transactions involving OP over the past 24 hours, which corresponds to a slight increase in price.
At the time of writing, 277.17 million OP, worth $501.62 million, have been purchased by major investors who own a significant portion of the supply.
This activity suggests that the bulk buying was in favor of OP's rise, as its simple price saw gains.
Source: IntoTheBlock
Additionally, the average transaction volume has increased significantly, reaching levels last seen on November 4. The average transaction volume over the past 24 hours has been $20,697.00.
An increase in both average transaction volume and large transaction volume indicates large purchases of the asset, adding bullish undertaking to the market.
Trade to $2.60 as target
The bullish outlook remained clear on the chart at press time, with OP trading within an accumulation pattern and forming a golden cross pattern.
On the 4-hour chart, OP was trading within a symmetrical pattern defined by the convergence of support and resistance lines — a bullish setup that appeared from time to time.
If the expected breakout occurs, OP could rise by 36.98%, reaching $2.616 before undergoing a price revaluation or continuing its upward movement.
Source: Trading View
At the same time, the formation of the golden cross pattern indicates a potential push for higher momentum prices as trading activity begins to increase.
A golden cross occurs when the blue MACD line crosses above the orange signal line. At the time of writing, the MACD line is at -0.001, while the signal line is at -0.004.
If the MACD line moves into a positive zone, it may lead to a significant price spike.
Rising interest in derivatives market
At the time of writing, the buyer share of the derivatives market has increased, as shown by the OP funding rate on Coinglass.
The funding rate tracks the mechanism used to balance price differences between spot and futures markets. A positive funding rate indicates a bullish market, while a negative rate indicates bearish sentiment.
At the time of writing, the funding rate was at 0.00132%, indicating that long positions were dominant. This dominance helps maintain price balance and suggests that the OP price could continue to rise much higher than its current level.