Optimism (OP) price pattern points to a breakout, 340% gains on the horizon?

OP, the native token of one of the leading layer 2 networks, Optimism, has witnessed an increase of over 22% in the past week alone due to the recovery of the crypto market. At the time of writing, the asset is trading near $1.70 as it forms an ascending triangle pattern.

Experts suggest that this pattern could increase its price.

OP bullish breakout potential

According to popular crypto analyst Ali Martinez’s latest tweet, OP has historically shown a tendency to form market bottoms using the ascending triangle pattern, which are usually followed by major price rallies. This technical formation suggests that a breakout is likely once price reaches the upper boundary of the triangle.

In previous instances, these breakouts have pushed OP towards the 1,618 Fibonacci retracement level, indicating a potential price target. With the token showing a similar setup, the price looks set to reach a bullish target of $7.20, representing a potential gain of 340%. If the pattern holds, this could indicate a major upward move in the near future.

Adoption of the OP stack is growing rapidly

As OP shows bullish technical signals, it is important to highlight the broader developments that are driving its market momentum. On the technical side of things, Optimism continues to garner attention as a Layer 2 scaling solution for Ethereum, leveraging its Optimistic technology to improve transaction speed and lower fees compared to the base layer of ETH.

This has attracted notable partnerships, including Coinbase’s adoption of the OP Stack for its own Layer 2 blockchain, Base, and Kraken’s announcement of its rival exchange network, Ink. Other popular entities include leading decentralized exchange Uniswap and global electronics leader Sony, which already uses OP Stack.

More recently, liquid recovery protocol Swell also announced that its Layer 2 is migrating to Superchain Optimism, abandoning its initial plans to use Polygon’s CDK.

Data compiled by L2Beat revealed that Optimism still lags behind competitor Arbitrum in terms of Total Value Locked (TVL) on Ethereum Layer 2 platforms, at just over $7 billion, compared to Arbitrum’s $16.06 billion.

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