In the past 24 hours, the Ethereum ecosystem is “waking up.” The ETH price broke past the $3.3k level while some projects on this chain are finally breaking out.
Besides ENA and ARB (both tokens are up in double-digit percentages today), the Optimism (OP) price is breaking out as well. The price is now trading around $2.1 after surging 22% in the last 24 hours.
Looking at the chart shared by Poppe, OP has made a strong move above the resistance zone around $1.60–$1.65, an area where the price had been consolidating for some time. This zone has been crucial, with multiple failed attempts to break through in the past few months.
The $1.00 level has been acting as major support, with the price consistently bouncing off this area. This psychological level has proven to be a strong foundation for buyers.
Poppe highlighted $1.5 area as a “buy zone” in his Optimism chart. This means that traders might want to remain on the side for this one and wait for potential corrections. If you are not already in, of course.
Where Is the OP Price Headed Next?
According to technical analysis, the next major target zone lies between $3.04–$3.05, suggesting a potential upside of nearly 60% from the breakout zone. However, traders should note that the RSI indicator is showing overbought conditions, which might lead to some consolidation or a pullback in the short term.
The breakout was accompanied by increased trading volume, indicating strong buyer interest. Market participants might want to watch for a potential retest of the $1.60–$1.65 area, which could now act as support. This retest, if successful, could provide confirmation of the breakout’s strength before the price continues its move toward the next resistance zone.
After a 160-day consolidation period, this breakout could signal a shift from a neutral to a bullish trend.
Read also: Is Cardano (ADA) Price Ready to Shatter $1 After a 168% Spike?
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The post Why Is the Optimism (OP) Price Pumping? Elite Analyst Shares “Buy Zones’ appeared first on CaptainAltcoin.
