Will Optimism (OP) soon break 0.72 dollars? Analysis of potential bullish trends.

Optimism (OP) is drawing attention with a surge in speculative activity. On June 6th, OP tested a crucial support level at $0.59 and since then, the price has bounced back strongly, increasing by more than 20%.

Although the bullish trend has broken the structure on the daily timeframe, the continuation of the price increase to the upper range has not yet been guaranteed. The liquidity area around the $0.74 mark is expected to play an important role in the upcoming developments.

Wave traders may look for buying opportunities if the resistance area within the range is turned into a solid support. Meanwhile, cautious investors should continue to stay out and wait for clearer signals.

On the contrary, opening a Short position is currently not suitable because the market structure is still leaning towards an upward trend.

The bull OP is focusing its efforts to break through the resistance of 0.72 dollars

OP Price Chart | Source: TradingViewThe 1-day chart shows that OP is forming a sideways pattern (in white) within the range of $0.59 to $0.84. On the daily chart, Optimism has recorded a breakout of the bullish structure (in green), thereby reinforcing the bullish trend.

If the price breaks through the resistance area in the range, wave traders will have the opportunity to buy with a target towards the peak area at a level of $0.84. However, at the time of writing, the momentum is still weak and not convincing enough.

The Money Flow Index (MFI) only reached a support level of 44 – indicating that the inflow of money is still limited, even though no negative divergence has appeared.

The On-Balance Volume indicator (OBV) also does not show a clear upward trend. Since mid-May, OBV has been fluctuating sideways, reflecting a balance between buying and selling pressure – a factor contributing to the formation of a range pattern.

This data also shows that investors and traders should not expect too early a breakout above the $0.84 mark.

Source: CoinGlassObserving the liquidation map over a 1-month time frame, the liquidity zone accumulating around the $0.72 level – the mid-range area – has been completely cleared. In the past few days, a series of Short orders have been liquidated just above the $0.72 mark.

Thus, OP may continue to rise to the $0.74 range in the short term before a bearish reversal occurs.

However, if the price of Bitcoin exceeds the $110,000 mark and continues to rise, then OP could definitely accelerate towards the price attraction area around $0.85 in the upcoming sessions.

Source: CoinalyzeData from Coinalyze shows the increase to $0.72 of OP accompanied by an increase of $22 million in open contracts (OI). Funding rate (funding fee), which was previously negative in June, has also started to show changes in the past 48 hours.

Although funding has not yet reflected a very strong bullish sentiment, this is a positive starting signal. Meanwhile, the recent CVD indicator has been moving sideways, but the increase in OI shows that speculative activity is significantly strengthening. This short-term optimism may help Optimism break through the local resistance zone in the near future.

Minh Anh