NewsletterBullish Pattern In Action Sets Optimism Coin’s Next Recovery Cycle To Hit $5
Amid the January recovery in the crypto market, the Optimism coin shows a parabolic rally from the January 1st low of $0.909 to a high of $3.24, registering near 255% growth. However, the coin price formed a local top at the $3.24 mark and went sideways immediately. The ongoing sideways trendline shows the formation of a pennant pattern. Here’s how this pattern may influence the OP coin’s near future movement.
Key Points:
- A pennant pattern usually appears in an established uptrend, offerings a short period to recuperate bullish momentum
- A bullish breakout from the pennant pattern could lead a bull run to the $5 mark.
- The intraday trading volume in the OP coin is $862 Million, indicating a 68.9% gain.
Source-Tradingview
The Optimism coin shows the formation of a pennant pattern in the daily time frame chart. This pattern is characterized by a strong rally which is the pole, followed by a small consolidation between two convergence trendlines.
In theory, this consolidation offers a small break to coin buyers where they can replenish the bullish momentum. Thus, the coin price today showed a 4.87% jump and breached the overhead trendline. This breakout should release the accumulated buying press and signal for resumption of the bullish trend.
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If the daily candle closes above the trendline, interested traders can look for entry opportunities as the next recovery cycle may begin. In ideal bullish conditions, this breakout could lead to a rally equivalent to the size of the pole mentioned above shot from breakout points. Thus with this pattern completion, the Optimism coin is poised for a bull run to $5.
On a contract note, if the daily candle closes below the trendline by the day’s end the ongoing consolidation will last a few more trading sessions.
Technical Indicator
RSI: The daily RSI slope managed to sustain above the midline during the recent consolidation indicating the market sentiment remain bullish
Trend-Based Fibonacci Extension: as per this indicator, the post-breakout rally may push the op price to potential targets of $3.25, $3.52, and $3.9.
Optimism Coin Price Intraday Level
- Spot rate: $3
- Trend: Bullish
- Volatility: Medium
- Resistance levels- $3.25, and $3.52
- Support levels- $2.5 and $2.08
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