thecryptobasic.com
Optimism (OP) continues to trade within an ascending parallel channel since its launch last May, with market veteran Ali Martinez recently forecasting a looming 62% price rally to $6 following a new ATH above $4.
Ali revealed this in a post on X, as he recently presented an Optimism price chart on the three-day timeframe. OP’s price performance since May 2022 has elicited mixed reactions from market participants.
OP dropped 71% to an all-time low of $0.396 in mid-June 2022. This collapse was partly triggered by the Terra implosion of last May. However, Optimism immediately staged a comeback, surpassing previous highs and rallying 466% to $2.243 in August 2022.
A retracement ensued following the 466% upsurge, leading to a massive drop to $0.634. After the drop, OP staged another rally to $3.290 this February. The asset had been caught in the grasp of the bears before the recent recovery campaign.
Optimism Within Ascending Channel
Amid the occasional turbulence and price upswings, data from Ali’s chart suggests that Optimism has continued to trade within an ascending parallel channel since last May. This trend suggests that the token has been recording higher highs and higher lows since then.
The analyst emphasized that OP is now in price discovery mode. When a token is in this mode, it means that the market is actively determining its value. During this phase, there may be increased volatility as buyers and sellers assess the token’s worth based on various factors.
Ali stressed that the prevalent ascending parallel channel continues to determine OP’s price movements. This trend suggests that the token could sustain its upward momentum.
OP Hits New ATH, Targets $6
Amid the latest uptrend, which began in October amid the recent market-wide resurgence, OP has broken above the middle boundary of the ascending parallel channel. This bullish momentum has resulted in a new all-time high of $4.13, recorded yesterday.
Ali believes Optimism could now be eyeing the channel’s upper boundary as its price pushes up. The analyst foresees sustenance of the uptrend, setting a target of $6 for the token, which would mark a 62% rally and a new all-time high.
OP has held above the $3.698 support in the short term despite a recent collapse from $4.13. The crypto asset is 4% down today as selling pressure mounts. Optimism now commands the 15th largest 24-hour trade volume, as volume surges 30% to $970,055,817.