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Optimism (OP) was one of the stand-out cryptocurrencies over the past day, as the native token of the Layer-2 blockchain enjoyed massive returns. As a Layer 2 chain on Ethereum, the growing trust and recognition in Optimism was evidenced by its Total Value Locked (TVL) also crossing the $5 billion mark over the same period.
With other cryptocurrencies experiencing minor dips, OP has reaped the rewards of a growing user base with a significant price pump. Can buyers forge ahead to hit a new all-time high for OP?
A case for a new all-time high
Optimism (OP) has embarked on a remarkable recovery after trading around the $1 mark for a significant portion of 2023. The swift rise from the $1.36 support level in December has seen the coin more than double its price.
The latest flip of the $2.5 resistance to support has provided a firm base for buyers to ramp up the buying pressure with the possibility of hitting a new all-time high before 2023 is over.
The four-hour chart showed that the Relative Strength Index (RSI) stood at 88 and the Chaikin Money Flow (CMF) stood at +0.39. Both were very bullish signs of sustained buying pressure and massive capital inflows for OP.
Short-term traders looking for long opportunities can enter at the $2.8-$2.9 price level with a profit target of $3.3 (previous all-time high). Long-term traders can look to ride the bullish wave a bit longer to the $4-$5 price range.
With the OP token serving as the primary means for transaction fees on the Optimism chain, the upside for growth remains large. This is especially true as more users flock to Optimism, based on its speed, stability, and scalability features.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.