Posted: November 12, 2024

• Optimism may surge 340% as it nears a breakout from a bullish ascending triangle.
• On-chain data revealed growing adoption and reduced exchange inflows, fueling bullish momentum.

Optimism [OP] has been trading within a sideways range for the past five months, consistently struggling to break above the $2 resistance.

Despite the consolidation phase, crypto analyst Ali suggested that this movement formed an ascending triangle pattern, a historically bullish setup. 

This setup could pave the way for a rally toward the projected Fibonacci target.

Potential for strong gains?

Optimism has previously displayed a similar price movement. The first ascending triangle breakout saw the price rise from around $1.00 to a peak near $3.23, achieving a 220% gain.

A second breakout occurred near $1.06, pushing the price to $4.77, marking a 350% increase.

Now, analysts observe a potential third breakout point around $1.85. If Optimism follows its historical trend, the price could climb toward $7.20, which corresponds to the 1.618 Fibonacci retracement level. 

This would represent a 340% gain from the breakout level, mirroring past performance.

Current market dynamics and price movement

As of press time, Optimism was trading at $1.81, marking an 11.09% increase in the past 24 hours and a 31.03% increase over the last seven days.

Its 24-hour trading volume was $1 billion at press time, and the market cap was valued at approximately $2.27 billion, with a circulating supply of 1.3 billion OP tokens.

Optimism’s current price was approaching the $1.85 resistance level. Breaking this threshold could confirm the ascending triangle breakout and lead to a sustained bullish rally. 

Historical patterns suggested that Optimism has formed similar setups in 2022 and 2023, both leading to rapid price surges.

On-chain data reflects positive sentiment

On-chain metrics indicated growing interest in Optimism. A recent spike in new addresses showed a 39.43% increase in the past week, while active addresses rose by 12.93%. 

Additionally, zero-balance addresses increased by 83.30%, suggesting that previously inactive wallets are re-engaging with the network. These metrics point to higher user participation and adoption.

Exchange netflows also painted a bullish picture, according to Coinglass data.

On the 12th of November, OP recorded a net outflow of $2.13 million, indicating that investors are moving tokens off exchanges, potentially for long-term holding. 

Historically, such outflows have coincided with price increases, hinting at reduced selling pressure.

Sustained trading activity supports growth

Transaction volume data further supported the bullish outlook. Optimism’s 7-day average transaction volume was 288.89 million OP, with a peak of 346.1 million on the 10th of November.

Read Optimism’s [OP] Price Prediction 2024–2025

The lowest recorded volume was 238.67 million OP on the 5th of November. 

This steady trading activity reflected consistent liquidity and network utility, which could provide the foundation for future price growth.