Bullish Pattern In Action Sets Optimism Coin’s Next Recovery Cycle To Hit $5

Amid the January recovery in the crypto market, the Optimism coin shows a parabolic rally from the January 1st low of $0.909 to a high of $3.24, registering near 255% growth. However, the coin price formed a local top at the $3.24 mark and went sideways immediately. The ongoing sideways trendline shows the formation of a pennant pattern. Here’s how this pattern may influence the OP coin’s near future movement. 

Key Points:

• A pennant pattern usually appears in an established uptrend, offerings a short period to recuperate bullish momentum
• A bullish breakout from the pennant pattern could lead a bull run to the $5 mark.
• The intraday trading volume in the OP coin is $862 Million, indicating a 68.9% gain.

Source-Tradingview

The Optimism coin shows the formation of a pennant pattern in the daily time frame chart. This pattern is characterized by a strong rally which is the pole, followed by a small consolidation between two convergence trendlines.

In theory, this consolidation offers a small break to coin buyers where they can replenish the bullish momentum. Thus, the coin price today showed a 4.87% jump and breached the overhead trendline. This breakout should release the accumulated buying press and signal for resumption of the bullish trend.

Also Read: CRYPTO TELEGRAM CHANNELS LIST 2023

If the daily candle closes above the trendline, interested traders can look for entry opportunities as the next recovery cycle may begin. In ideal bullish conditions, this breakout could lead to a rally equivalent to the size of the pole mentioned above shot from breakout points. Thus with this pattern completion, the Optimism coin is poised for a bull run to $5.

On a contract note, if the daily candle closes below the trendline by the day’s end the ongoing consolidation will last a few more trading sessions. 

Technical Indicator

RSI: The daily RSI slope managed to sustain above the midline during the recent consolidation indicating the market sentiment remain bullish

Trend-Based Fibonacci Extension: as per this indicator, the post-breakout rally may push the op price to potential targets of $3.25, $3.52, and $3.9.

Optimism  Coin Price Intraday Level

• Spot rate: $3
• Trend: Bullish
• Volatility: Medium
• Resistance levels- $3.25, and $3.52
• Support levels- $2.5 and $2.08

The post Bullish Pattern In Action Sets Optimism Coin’s Next Recovery Cycle To Hit $5 appeared first on CoinGape.