- The analyst considers OP surpassing 3,000 sats to be crucial for a major bullish rally.
- Increasing network activity and accumulation suggests that OP may be primed for upward movement.
Optimism (OP) has recently shown strong upward movement, hinting at a possible bullish breakout. Michaël van de Poppe, crypto analyst, identified a bullish divergence, where lower price lows contrast with higher lows of the Relative Strength Index (RSI).
This trend often indicates the potential for bullish momentum. Van de Poppe points out that 3,000 sats is a crucial resistance level that OP must surpass for continued gains.
Source:
If optimism manages to break this resistance, it could pave the way for a rally towards 4,500-5,000 sats. In contrast, the 2,000-2,150 sats range acted as a reliable support zone, with the price bouncing off this level several times.
Even though the recent rally has brought the price back to key levels, any failure to break through resistance could lead to further consolidation.
Price Action and Indicators Suggest Volatility
Optimism price action remains volatile, fluctuating within the Bollinger bands on the 4-hour chart. The recent price touched the upper band around $1.85, which acts as immediate resistance, while the middle band at $1.76 serves as dynamic support.
These indicators suggest that even as OP attempts to break through, it is also facing significant resistance at current levels.
Source: Trading View
The Moving Average Convergence Divergence (MACD) signals a potential bearish crossover, which indicates weakening bullish momentum. The RSI is neutral at 51.24, showing that the market is neither overbought nor oversold.
Given these mixed signals, traders could see further consolidation unless a strong breakout occurs soon.
OP token flow shows signs of accumulation
According to recent dataOP tokens are increasingly being withdrawn from exchanges, which could indicate accumulation by investors. As of October 1, net outflows of $634.09 thousand were recorded on spot exchanges.
This suggests that more tokens are being withdrawn from exchanges than deposited, which could signal a reduction in selling pressure and an anticipation of future gains.
Source: Coinglass
Historically, such negative net flows are often correlated with periods of price accumulation, with investors holding on to their assets rather than selling them.
However, a significant increase in capital inflows would indicate renewed selling pressure, which could prevent prices from rising.
Increased network activity
Network data from IntoTheBlock watch a constant increase in new and active addresses for OP. As of September 30, there were 11.13k addresses in total, including 1.56k new addresses and 7.94k active addresses.
The increase in new addresses of 29.37% over the past seven days reflects the growing interest in the OP token.
Source: In the block
Likewise, active addresses increased by 12.79%, indicating that more users are interacting with the network.
Additionally, zero-balance addresses – those without tokens – increased by 31.02%, which could suggest that users are preparing for future transactions or moving assets off-chain.
This increase in address activity highlights continued engagement with the OP Network and indicates that the token continues to attract new users.
Realistic or not, here is the market capitalization of OPs in terms of BTC
At press time, OP was trading at $1.85with a 24-hour trading volume of $224,485,832, reflecting a 2.28% price increase over the past 24 hours and a 10.77% increase over the past week.
These metrics indicate that optimism maintains strong interest in the market despite overall market volatility.
