Optimism (OP) Price Prediction: Bulls Aiming for $4 Retest after 20% Gains

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Updated: Apr 28, 2024, 18:25 GMT+00:00

Key Points:

Optimism (OP) price has surged 20% over the last 48 hours amid bullish tailwinds surrounding the Ethereum Layer-2 sector.
Rising trading volumes and strong buying momentum suggests more upside ahead.
Optimism (OP) bulls now face a key resistance sell-wall at the $3 area

Bulls Aim for a Turnaround With a Sharp Intraday Jump

Prior to the 20% rebound at the weekend, Optimism price had been in a steep decline for the past two week. as indicated by a sharp downward read trendline on the daily chart below.

The coin price reverted thrice from this dynamic resistance indicating the traders continue to sell this asset at market bounce, a key sign of an established downtrend.

Optimism (OP) Price Action | April 2024 | TradingView

However, with the recent Bitcoin halving, the OP found suitable around the $2 psychological level to form a local bottom. A positive turnaround from this support has uplifted the asset by 45% within a fortnight to the current trade at $2.63.

With a 12.6% intraday jump, the coin price teases a breakout from the overhead trendline. A daily candle closing above the resistance trendline will signal a change in market dynamics favoring buyers.

The post-breakout rally could surge the Optimism coin to a potential target of $3.4, followed by $4, and $4.78.

On a contrary note, if the supply pressure and a descending trendline persist, the ongoing consolidation may prolong aiming for a breakdown below the $2 support.

OP Price Forecast: $3 Resistance Could Give Way

At the time of writing OP price trending just above the $2.7 area. However, Optimism’s daily RSI slope heading to the 50% midline indicates the negative market sentiment is improving to neutral.

This could encourage more participation from bulls on the sidelines, with that additional demand likely to propel price above the critical $3 milestone.

Optimism (OP) Price Forecast | Source: TradingView

Meanwhile, as depicted above, the 20-day EMA price at $3.01 could evolve into a dynamic resistance to OP’s short-term uptrend. But if the bulls can stage a decisive breakout out above the area, a move toward $4 could be on the cards.

On the contrary, the bulls can rely on the support cluster around $1.95 if rally is knocked back by traders seeking to book profits early.

About the Author

Ibrahim Ajibadeauthor

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.