Optimism (OP) Crypto Shows a Bounce This Week, Revealing Accumulation

Optimism (OP) crypto, the Layer-2 network built on the Ethereum blockchain, has shown a bounce this week, revealing accumulation.

Optimism (OP) Price Analysis: Aiming for $1.60 Amidst Bullish Cues and Accumulation Signs

Optimism (OP) crypto, the Layer-2 network built on the Ethereum blockchain, has shown a bounce this week, revealing accumulation. Despite the bounce, OP still trades in a triple bottom pattern, attempting to break out.

Key technical points:

OP crypto price showcases a triple bottom formation on the daily time frame chart.

The RSI indicator generates a bullish divergence throughout the triple bottom pattern.

The total value locked (TVL) on Optimism has decreased to $564.62 Million.

Optimism crypto price analysis: Triple bottom breakout in sight

This week, OP Crypto has started to deliver signs of bullish cues and gained momentum. Rising by over 15%, the OP price has climbed above the 20-day EMA mark and is set to skyrocket gains in the coming sessions.

A closer look at the technicals reveals a triple bottom formation building up on the daily time frame chart. This pattern signifies three distinct attempts by the bears to push the price lower, followed by strong buying pressure that raises the price back up.

As evidenced by the RSI, a bullish divergence pattern is formed, which indicates a short-term rise is intact. Along with RSI, the price action signified the increase in buying pressure and a volume surge.

Optimism On-Chain Analysis: Active addresses increase as TVL drops

Optimism's Total Value Locked (TVL) reached its yearly high of $1.01 Billion on March 18, as per DefiLlama. Afterward, the Optimism crypto's TVL continued to drop and decreased to $564.62 Million at press time.

If the TVL decreases, it implies that market participants are withdrawing previously locked tokens. Hence, the OP price could decline.

Active Addresses estimate the number of users; if the value increases, it implies an increased interaction. Following the price increase, the data of the token’s active addresses witnessed a rise, revealing the investors’ adoption.

Meanwhile, the development activity data stayed capped at around 68. It represented the constant growth of the ecosystem.

Optimism Price Chart Analysis: Bullish outlook with key resistance at $1.80

Adding to the bullish outlook, the OBV indicator highlighted the market's favorable structure and signaled a significant reversal.

Moreover, the consistent positive value of the OI-weighted funding rate implied that traders have been making long positions, which is a sign of an uptrend.

When writing, the token’s funding rate was noted at +0.0080%, underlining the positive market sentiment.

If the buying pressure continues, OP crypto price could gradually rise, potentially reaching the $1.60 mark. A major resistance to watch out is close to the $1.80 mark. However, if the token is rejected at $1.50, the downside support levels are around $1.25, followed by $1.10.