Optimism (OP) token price dropped by 1% in 24 hours. Additionally, it traded at $1.37 in the Asia-Pacific session on September 20, continuing its sideways consolidation over the previous three days. However, the token may increase by 27% by 2024 due to bullish techniques.
Technical data Optimism Targets Price at $1.75
OP has traded within a technical setup called a “falling wedge” since late July, best seen on the four-hour chart below.
A falling wedge is a bullish reversal setup characterized by two descending, converging trend lines. Typically, it resolves after the price breaks above the upper trend line and grows by the maximum height of the wedge.
Koinfinans.com As we reported, OP price action broke resistance on September 12, confirming the setup. Thus, the target OP price stands at $1.75 by the end of the year, a 27% increase from the current value.
Additionally, the chart above showed a Gold crossover between the 50-four-hour exponential moving average (50-4h EMA; orange wave) and the 100-4h EMA (light blue wave). A golden cross occurs when a short-term EMA crosses above a long-term EMA. Moreover, it predicts a rising phase in the future.
Specifically, the Gold crossover is a consequence of the price movement and cannot be the cause. However, it is possible that this formation could provide additional support for the asset, as in the OP’s example.
Additionally, the daily price action chart below shows OP forming a support combination from the 20-day EMA (red wave) on September 19th, the flat resistance-support at $1.36, and the ascending trend line (dashed line) that has been relevant since July. shows that it has been achieved.
In addition to the upward incentive, altcoin The number of holders reached 1.09 million on September 20, up 112,000 wallets in the previous week.
The launch of the 3rd Round of Retroactive Public Goods Financing (RetroPGF) may be behind the rise. In short, RetroPGF offers rewards to “users and builders” in Optimism.
When a user transacts on OP Mainnet, profits from network ranking are used to fund public goods through RetroPGF.
It’s possible that the launch also explains the increase in development activity at OP.
While the OP has made higher lows since June, the relative strength index (RSI; purple chart below) has made lower lows.
It is possible that such a divergence would indicate a change in momentum before a corresponding change in price. It is possible that OP’s decreasing trading volumes may also reduce bullish expectations. The coming sessions will show whether OP bulls are ready to double down and move the token to its target price.