On-chain Data and Whale Accumulation

• On-chain data signaled whale accumulation, with a heavy dependency on Bitcoin’s movement as OP’s open interest rises.
• An analyst predicted a potential 24% gain if optimism breaks above the ascending triangle pattern, following bullish market sentiment.

As of this month, Optimism (OP) has been trading within an ascending triangle pattern on the 4-hour chart, with its price surging 2.31% in the last 24 hours, according to CoinMarketCap data.

OP’s trading volume increased by 21.38% as the token flashes signs of recovery. Will OP break above the $1.18 key resistance and rally further?

Optimism’s Technical Setup

Currently, OP’s price is sitting on an ascending trendline and trading at $1.13.

The uptrend in its ascending triangle suggests a bullish breakout above the $1.19 key resistance level, with an ascending support range of $0.91 to $1.10.

A breakout with high volume could confirm the bullish momentum. According to an analysis shared by Ali Martinez on X (formerly Twitter), a breakout above the ascending triangle could push the price to the $1.28-$1.31 zone, generating a substantial 24% gain.

On-Chain Metrics

Looking at holder profitability, the majority (89%) are at a loss, with only 7% in profit, according to IntoTheBlock data. Additionally, whales, or large-scale investors, hold 83% of Optimism tokens.

At the time of writing, the Exchange Netflow stood at -$1.7 million, suggesting OP has been leaving exchanges lately. This trend could indicate whale accumulation or short-squeezing to cover positions and limit losses.

With a Bitcoin correlation of 0.93, OP’s price trend is closely tied to BTC’s price movements.

Is Optimism Recovering?

As of this writing, Optimism’s 24-hour Relative Strength Index (RSI) was at 36, rising to 49 in a 4-hour timeframe, based on Cryptowaves data.

According to Coinanlyze data, OP’s Long-Short Ratio was 2.84, indicating bullish sentiment and potential recovery.

A 0.26% increase in Open Interest signaled renewed bullish sentiment, visible in OP’s ascending triangle formation.

Optimism needs to break and sustain above the $1.18 key resistance level after the breakout of the ascending triangle with high volume to confirm its bullishness.

However, if it fails to breach this level, the altcoin could retest the support at $1.13, moving towards the $0.90 key support level.

Traders should monitor OP’s next movements within this formation while keeping an eye on whale activity.