Optimism Bulls Eye $1.18 Breakout as Whales Accumulate

Optimism, a layer-2 scaling solution for Ethereum, has been exhibiting bullish patterns in recent trading sessions, with analysts predicting a potential break above the $1.18 resistance level. On-chain data signals whale accumulation and a strong correlation with Bitcoin's price movements, as Optimism's open interest continues to rise.

As of this month, Optimism has been trading within an ascending triangle pattern on the 4-hour chart, with its price surging 2.31% in the last 24 hours, according to CoinMarketCap data. The token's trading volume has also increased by 21.38%, indicating signs of recovery. The key question on traders' minds is whether Optimism will break above the $1.18 key resistance and rally above the ascending triangle formation.

Technically, Optimism's price is sitting on an ascending trendline and is currently trading at $1.13. The uptrend in the ascending triangle suggests a bullish breakout above the $1.19 key resistance level, with the ascending support range being $0.91 to $1.10. As the trading volume rises, a breakout with high volume could confirm the bullish momentum.

Analysts, such as Ali Martinez on X (formerly Twitter), predict that a breakout above the ascending triangle could push the price to the $1.28-$1.31 zone, generating a 24% gain. However, it is essential to monitor the token's on-chain metrics to gauge its overall health and potential for recovery.

Looking at the holder's profitability, the majority (89%) are at a loss, with only 7% sitting on profits, according to IntoTheBlock data. Additionally, whales or large-scale investors hold 83% of Optimism tokens. The Exchange Netflow stood at -$1.7 million, suggesting that OP has been leaving exchanges lately, which could indicate whale accumulation or short-squeezing to cover positions and limit losses.

With a Bitcoin correlation of 0.93, Optimism's price trend is closely tied to BTC price movement. As of this writing, Optimism's 24-hour Relative Strength Index (RSI) was at 36, and rose to 49 in a 4-hour timeframe, based on Cryptowaves data. According to Coinan