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OP, the native cryptocurrency of the Optimism layer-two blockchain on Ethereum, looks ready for a breakout that could kickstart a long-awaited price rally. OP’s price action on the weekly chart shows the cryptocurrency has bounced off key support and is forming a new upward trend.
Data from TradingView shows OP found a bottom after retesting the support at $1.06. That level represents significant support for the cryptocurrency established in June 2023 after pulling back from a massive rally. August 5, 2024, marked the first time OP retested that support. More significantly, it represents the cryptocurrency’s lowest price in 2024 and fulfilled a complete Fibonacci retracement from the year’s price rally.
Since bottoming out on August 5th, OP has rallied over 80%. The price climbed from $1.063 to $1.939 in two months before dropping slightly. However, OP seems to have regained its bullish momentum and is moving towards a retest of the resistance around $1.950. This region lines up with the 0.236 Fibonacci retracement from the Q1 2024 high, and crypto analysts believe breaking above this level will launch a bull run for OP.
Crypto analysts point to Optimism’s recent token airdrop as one event that has boosted investor interest in the cryptocurrency. This month, the blockchain project gave out 10.3 billion OP tokens to 54,000 wallets, exciting investors.
Analysts say the token distribution helped Optimism spread its native crypto across a wider base of holders, leading to a more decentralized ecosystem. The project’s tokenomics remained stable despite initial fears of oversupply following the airdrop. Optimism’s Realized Profit/Loss didn’t show any significant change, and its network growth shot up by over 600%.
Read also : Analyst Predicts Optimism (OP) To Soar Driven by Superchain Interoperability
Onchain data show an influx of users into the Optimism network, creating room for an increased inflow of funds. With the current price trend, OP seems poised to break above the $1.950 resistance, which would open the way for testing the next Fibonacci level at $2.50. At this level, the Ethereum-based crypto would have re-established its upside momentum, opening the way for a total recovery with the potential of setting new records.
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