Optimism (OP) is showing renewed strength as it holds firmly above the lower boundary of a descending channel on the three-day chart.
According to the crypto analyst Jonathan Carter, this technical level has become a critical support zone, where buyers appear to be stepping in. The channel structure remains intact, suggesting the asset is still following a defined pattern watched closely by traders.
Market activity also indicates growing interest, with trading volume beginning to climb during this consolidation phase. Rising volume near support often signals accumulation by investors preparing for a potential move higher.
As selling pressure weakens and buying demand increases, Jonathan Carter believes the current zone could become a launch point for a broader recovery.
Also Read: Optimism (OP) Price Eyes 4000% Rally As Accumulation Zone Forms
Optimism (OP) Eyes $2.50 After Strong Support Bounce
Technical momentum is gradually shifting in favor of bulls. If OP successfully rebounds from this support area, the token could begin forming higher highs and higher lows, a classic signal of a strengthening uptrend.
Maintaining the channel support while momentum builds would reinforce confidence that the market is preparing for a potential breakout.
Currently, several resistance levels are being tracked for a possible upside if the bullish case is valid. The first is at $0.20, and then $0.34 and $0.47 as the price continues to gain traction.
Higher breakout levels are tracked at $0.87 and $1.34, and a long-term run-up is also possible, targeting the lofty $2.50 price level.
Momentum Indicators Point to Cautious Outlook
According to TradingView, the Relative Strength Index for OP is indicating an oversold condition, currently trading at 27.02. This is an indication that there has been considerable selling pressure over February, as the RSI has been unable to rise above 40.
However, it is slightly flattening, which indicates that it is becoming exhausted. Currently, it is trading close to its signal line, which indicates that it is becoming stable.
The MACD shows a potential bullish crossover, where the blue line rises above the orange line. Although the values are still below the zero line at -0.02291, the histogram has changed to a green color.
This indicates a decrease in bearish velocity, showing that the strong bearish trend is weakening, as the market seeks a new trend.
Also Read: Optimism (OP) Breaks Descending Triangle as Technicals Hint at $2.74 Breakout