Optimism (OP) Price Prediction – When will OP hit $5?
Last week, the native token of the Optimism blockchain network OP was increased by over 28%. The impressive rally in the asset price is associated with key metrics growth and a positive trend in network activity.
Crypto analytics portal Messari reported a dramatic growth in user adoption for the Optimism network. Optimism network's daily transaction numbers and unique address numbers have reached absolute highs over the past few weeks. We can see both figures respectively reached 499,720 and 1.93 million based on Optimistic Etherscan data.
The increasing activity of the network has a positive effect on the business of Optimism. Thus, in the last 30 days, $1.55 million in gas has been collected, according to Token Terminal, 67.48% from the previous month. Of this, validators will receive $360,820 in revenue, 125.6% up from the last similar period.
This token has an optimistic bullish potentiality based on the latest fundamental outlook but investors should focus on its technical structure before taking any trading decision.
Let’s have a look at the Optimism (OP) Price Prediction from the OP/USDT technical analysis:
OP/USD Bullish Pressure Is Supported By Institutional Investors
The buying pressure in the OP/USD price is solid as the current price is still trading within the bullish swing of the July 2022 peak.
In the most recent price chart, an excessive correction and a solid buying pressure above the dynamic 20 DMA resistance are visible. Moreover, the bullish pressure is supported by institutional traders as the current high volume level from November high to low is below the current price.
Based on the visible range high volume indication, the highest trading volume level in the last two months is at 0.937 level. Therefore, the primary outlook of this instrument is to look for long opportunities as long as it trades above the 0.937 level. Moreover, the dynamic 20 EMA is below the price, providing confluence support to bulls.
The interesting factor for OP/USD bulls is the recent swing formation at 0.633 and 0.758 levels. A buying pressure from these two levels appeared with a sell-side liquidity grab, which is still not retested.
Based on the current daily Optimism Price Prediction, the bullish possibility is solid as long as it trades above the 0.900 key psychological level. In that case, any intraday buying attempt could provide an opportunity of having the price at the 1.476 key resistance level.
The alternative trading approach is to find the price below the dynamic 20 EMA with a bearish daily candle. In that case, bears can grab the wheel by taking the price down to the 0.5000 key number.
OP/USD Ichimoku Cloud Analysis
In the H4 timeframe, the current price structure of OP/USD is bullish as the current price is trading higher above the Could support. Before forming a bullish impulsive cloud breakout, the price made multiple higher lows, which is a sign of a bullish liquidity building before forming the buying pressure.
The Senkou Span A is above the Senkou Span B on the advanced cloud level. It is a signal that short-term and medium-term bulls are active in the market, where short-term bulls are more aggressive than medium-term traders.
The indicator window shows a possible bearish possibility as the current MACD Histogram level is at the neutral area, while MACD EMA showed a bearish crossover at the overbought zone.
Based on the current market outlook, OP/USD is more likely to increase in the coming days. The buying possibility is valid as long as it trades above the 0.9720 level. Any bullish reversal and an H4 candle above the dynamic Tenkan Sen could trigger the buying momentum, targeting the 1.420 level.
However, any further selling pressure with an H4 close below the 0.880 level could indicate a bearish trend continuation opportunity, where the ultimate price target will be 0.700.
OP/USD Intraday Price Action Analysis
In the OP/USD hourly chart, the bullins possibility is potent as the current price is trading above the visible range high volume level. This price behavior indicates that bulls are still active in the market and can send the price above the 1.144 swing high.
The intraday high volume level showed new highs, while the latest high volume level was at 1.083, which is acting as immediate support.
The dynamic 20-hour EMA is closer to the price, while the weekly VWAP is below the 1.032 support level. Moreover, the Traders Dynamic Index (TDI) is at a lower band and can rebound above the neutral 50% level.
Based on the H1 OP Forecast, any bullish rejection from the dynamic 20 EMA or 1.032 support level could offer a long opportunity, where the main aim is to test the 1.400 key level.
The buying possibility is valid until bears take it below the 0.880 support level. A bearish pressure below this level with an H1 candle close could increase the possibility of reaching the 0.7000 level.
Is OP/USD A Buy?
Based on the current OP price prediction, the broader outlook for the OP/USD is bullish where a bullish reversal in the intraday time frame could offer a long opportunity.
On the other hand, close attention to the daily candle is needed where a bearish pressure and a candle formation below the 0.758 level might alter the current market outlook.
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