Why Is Optimism (OP) Price Up? Bulls Target a Major Rally to This Price Level

The Optimism (OP) token has seen tremendous growth over the past week, surging over 60% and entering what some are calling “price discovery mode” as investors bid up the Web3 project’s native crypto asset.

Hitting New Highs

Optimism hit a peak of $3.9 on Wednesday before pulling back slightly to the $3.7 level on Thursday. However, the project’s token is still up an impressive 16% over the last 24 hours and a whopping 66% over the last 7 days.

This parabolic rise signifies strong momentum and interest building behind Optimism, an Ethereum scaling project that aims to lower gas fees and improve transaction speeds through layer-2 solutions. The recent price action seems to suggest investors are bullish on Optimism’s long-term potential as Ethereum continues working to enhance capacity.

Entering Price Discovery

As @ali_charts, a crypto analyst stated, Optimism appears to have entered a “price discovery mode” where its token is charting into new all-time high territory. He notes the price action has formed an “ascending parallel channel” pattern, which often signifies further upside ahead. If this pattern continues along the upper boundary, Optimism’s token could potentially reach the $6 level in the near future.

However, it remains to be seen whether the rapid surge is sustainable or if a pullback is ahead after such a vertical move in a short timeframe. Nevertheless, the interest is undoubtedly growing around Optimism’s goal of making Ethereum more scalable and usable for decentralized applications.

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Importantly, he believes that if this pattern continues along the upper boundary, Optimism’s token could potentially reach $6 – representing an additional +60% upside from current levels around $3.7. So even after the parabolic rise we’ve seen over the past week, some experts think there is room for substantially more gains in the Optimism token price.

“Optimism is in price discovery mode! The 3-day chart suggests an ascending parallel channel drives the $OP price action,” @ali_charts tweeted. “With this pattern in play, #OP might be setting its sights on the channel’s upper boundary, potentially targeting around $6.”

The Blockchain Project

As a reminder, Optimism is a layer-2 scaling project built on top of the Ethereum blockchain aiming to improve usability. Its core technology involves “optimistic rollups” which bundle or rollup transactions off-chain while leveraging the underlying Ethereum mainnet as a trust anchor. This helps reduce costs and latency by minimizing the computational work required directly on layer-1.

The project has seen strong adoption from protocols looking to enhance their offerings while still benefiting from Ethereum’s security. Over $500 million is now locked into Optimism apps and services seeking faster and cheaper transactions. With momentum clearly accelerating for both the protocol and its native token, the project looks poised to continue making waves in the Ethereum scaling landscape. Investors and developers alike will be closely monitoring its growth trajectory after this week’s parabolic surge.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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