Optimism (OP) is garnering attention in the market following its prolonged consolidation amid ongoing global market recovery.
Today, crypto trader Ali Martinez shared a chart for OP in the X platform, identifying an ascending channel that could signal a bullish reversal.
Optimism to reclaim $3.50
According to data released by Martinez today, Optimism has been trading in an ascending channel pattern for some time now. Its current market movements have seen it retesting the lower trendline of the ascending channel, which could bolster its performance in the coming months.
The ascending channel provides A positive outlook, which could see Optimism rebound from the lower boundary to the upper boundary at $3.50.
According to Martinez’s chart, Optimism currently trades at around $1.826. However, he highlighted the significance of the $1.7 support level as a crucial zone to observe in the days ahead.
According to Martinez, the $1.7 mark represents a key support zone within its ascending channel. If the asset holds above this level, it could act as a foundation, enabling Optimism to bounce back and continue to move higher highs along a bullish path.
As a result, Optimism currently gleams a buy signal, highlighting that now could be the ideal time to accumulate the asset. With the token currently hovering at around $1.826, this presents a perfect time to amass the asset.
With adequate support at $1.7, Optimism could rally towards a target of $3.5. Such a move could see Optimism experience a 105.88% rise from its current support zone, highlighting a robust bullish trend if buyers successfully defend this major level.
However, according to Ali’s chart, if Optimism buyers were to fail to hold this level, the token could experience a further decline. In such a situation, traders can set a stop loss between $1.550 and $1.350 (as indicated in Ali’s chart) to maintain a positive risk-to-reward ratio.
Optimism price updates
As we approach the end of January 2025, Optimism is still experiencing a consolidation trend. The token slowed down its strengths for some time now since December.
OP is currently trading at $1.74, down 7.4% over the previous day and its price has been down 1.1% in the last 30 days. This recent sluggishness comes amid broader crypto markets displaying recovery while others continue to struggle.
However, the recent formation of the ascending channel pattern (spotted by Martinez) suggests increasing buying pressure. This indicator is further backed by OP’s trading volume, which saw a 74.10% rise over the previous day, signaling a recent increase in market activity.
Also, its price has been up 4.90% in the last seven days, highlighting increasing user confidence in the token. This surge appears supported by broader uptrends in the global digital asset markets, majorly driven by Trump’s inauguration as the US president. It means Optimism is primed to rise as a response to increased enthusiasm in the wider market.
