How Optimism crypto’s 17% rally puts $0.11 in focus for OP bulls

Optimism [OP] is up more than 17% in the past 24 hours at press time. Notably, the altcoin became the third-largest gainer of the day, with the market cap trading above $260 million.

Fundamentals, network activity, and a shifting market structure have driven the altcoin. Here are the details contributing to this rally.

Why is Optimism crypto up today?

The fundamental driver was Uniswap’s [UNI] Unichain moving to OP Enterprise. As such, the network has been having a week full of launches, new milestones, and events across the OP ecosystem.

For instance, the chain made it possible for stablecoin deposits, that is, $USDT and USDC, to go live on AAVE’s mobile app. At the same time, Sonium announced a platform focused on tokenized IP as EtherFi card holders hit 120K.

Driving a spike in network activity, the Binance hacker moved 44.23 million OP (valued at $5.37 million) from the black-hat address to a newly created wallet.

In response, Binance started buying back the stolen assets through on-exchange and OTC channels.

As a result, Spot traders started to buy OP tokens, forcing closure of shorts betting against the rally. On the other hand, Futures positions barely changed on Binance as Open Interest (OI) rose by only 3%.

In general, the transaction count rose by 20% from 1 million to 1.20 million, as per Token Terminal. Notably, the weekly sum is at 8.1 million, with transactions averaging a million per day.

While OP was bullish in the short term, sustaining the rally was a critical test to buyers.

Can OP bulls keep the breakout alive?

At the time of writing, Optimism broke above a slanting trendline and a horizontal resistance at $0.11. However, bulls are facing a hard time keeping the price of Optimism above this zone as the altcoin retests the level.

The Bull Bear Power (BBP), which turned green, saw a reduction in buyer momentum. Additionally, the Money Flow Index (MFI) was at 54.97, just around the neutral level, reinforcing this outlook.

Structurally, on the 4-hour chart, OP is bullish after the breakout.

Still, OP’s potential to hit $0.16 hinges on staying above $0.11, but traders should be wary of the hurdle at $0.135. If the altcoin loses $0.11, it may drop to $0.10 or to the low of $0.0943.

Final Summary

• Optimism rallied over 17% in the past 24 hours amid a network upgrade and increased buying activity.
• OP’s market structure turned bullish, but to remain unchanged, the altcoin needs to stay above $0.11.