Analyst Calls Optimism Price Bottom Amid This Bullish Setup; Is $17 in Sight?

During the U.S. trading session on Monday, the crypto market winessed an accelerated momentum as Bitcoin price spiked to a new high of $85,000. Most major altcoins are following the same pace and preparing to challenge their respective highs. Amid the bullish sentiment, crypto analysts bring investors’ focus to Optimism price as it forms a cyclic pattern before initiating a major rally.

By press time, the OP price had traded at $1.73, with an intraday gain of 5.9%. According to Coingecko, the asset’s market cap was boosted to $2.19 billion, and the 24-hour trading volume was $627.5 million. 

Analyst Identifies Optimism Price Bottom Amid Bullish Setup

Over the past 5-months, the Optimism price has showcased a sideways trend, struggling to surpass the $2 barrier. While the consolidation trend may indicate a lack of buyers’ conviction, crypto analyst Ali Martinez reveals it as a formation of an ascending triangle pattern.

A horizontal resistance trendline and an ascending support trendline characterize this chart setup. Generally, this setup emerges as an established uptrend as the temporary consolidation allows buyers to regain bullish momentum before the next leap.

With the crypto market today, the Optimism price trades at $1.7, trading nearly 11% away from the key resistance breakout. Interestingly, the altcoin formed a similar pattern in the June-October 2023 consolidation and the August-December lateral movement in 2022, both triggering a massive bull run.

If history repeats, the crypto analyst believes the post-breakout rally could hit $7.2, registering a potential growth of 336%.

OP Coin Accumulation Surges as Large Holders Boost Holdings

Despite the sideways action, the OP coin has witnessed an active accumulation trend since February 2023. According to Santiment data, the large holders with 1 Million to 10 million coins have increased their holding from 131 Million to 741 million ADAs.

This significant rise in holdings implies growing confidence among institutional and large investors in the asset’s long-term potential. Such accumulation trends often precede major market reversals and could signal reduced selling pressure.

On the contrary, if the sellers continue defending the overhead resistance despite the U.S. election boost, the Optimism price could prolong consolidation.