Optimism Breaks Year-Long Wedge, Eyes 30% Rally Toward $1.10

Optimism (OP) has recently seen a notable technical development as it broke out of a year-long falling wedge pattern, sparking optimism among traders and analysts about its potential to reach the $1 price level [1]. The pattern, which had been in place for over 360 days, showed OP trading within a narrowing range, with price bouncing between defined support and resistance levels. The breakout occurred as the token moved decisively above the upper boundary of the wedge, a move that is typically seen as a sign of upward momentum and accumulated buying pressure [1].

The breakout was further supported by the token's position within an ascending channel on the daily chart. Data indicates that OP has consistently traded above key moving averages, including the 9-day EMA and the mid-channel line. This suggests that short-term momentum is stronger than the longer-term trend, a bullish sign for the token’s near-term direction [1]. The channel has served as a reliable guide since early June, with each bounce from the lower support line pushing the price higher toward resistance.

In addition to the wedge breakout, weekly chart analysis from Solberg Invest highlights a significant shift in the token's trajectory [1]. The analyst notes that the wedge formation was initiated following a decline from highs near $4.00 and that the recent breakout is the first in over a year. Historically, such breakouts have often been followed by strong price rallies, and in this instance, analysts are projecting a potential 30% gain from current levels [1]. A sustained push above $0.90 could further accelerate the move toward $1.10, with the long-term technical structure offering room for even higher targets.

Market capitalization data also reflects the growing optimism. From early August lows of $1.05 billion, OP’s market cap has rebounded to highs above $1.50 billion, before consolidating near $1.35 billion [1]. On lower timeframes, Bollinger Bands are widening and Stochastic RSI readings indicate periodic momentum swings—characteristics commonly seen in markets preparing for a major move.

With OP respecting key support levels and confirming a significant breakout on higher timeframes, the focus for traders is now on a decisive move above $0.90–$0.95. A clean break through this resistance could set the stage for OP’s strongest rally in over a year, provided it continues to hold above key EMAs and trendlines [1].

Source: [1] BeWhale (@bewhaleapp) • Instagram photos and videos (https://www.instagram.com/bewhaleapp/?hl=en)