The Optimism price is leading the gains on Tuesday as all the major cryptos flash red. OP has rallied 5.8% over the last 24 hours to trade at $3.21 as of 2:00 am ET.
With this performance, Optimism is the biggest gainer among the top 100 cryptocurrencies by market capitalization, according to data from CoinMarketCap.
Top gainers Feb. 1. Source: CoinMarketCap
What are the key levels to watch out for Optimism in the near term?
OP price trades seeks to escape from a bullish triangle
Since Jan. 23, the Optimism price action has been characterized by a series of high lows and relatively equal highs around $3.20. This had led to the appearance of an ascending triangle on the daily chart.
This is a highly significant bullish formation that is confirmed once the price produces a decisive close above the resistance line – formed by the equal highs. This projects an increase in price equal to the height of the triangle.
In the case of optimism, a daily candlestick close above $3.20 would confirm a bullish breakout from the triangle with the target set at $3.67. This would mark a 15% uptick from the current price.
OP/USD daily chart. Source: TradingView
Supporting the bullish thesis for the OP token was the upward facing relative strength index (RSI). The price strength at 52 suggested that the buyers have begun dominating the market.
Perhaps the most important technical indicator supporting Optimism’s upward thesis is the major support zone between $2.68 and $3. Note that this is where the 50-day and the 100-day exponential moving averages (EMA) lie.
As such, any attempts to pull the Optimism price below this level would be met by intense buying from this cohort of buyers who would want to increase their profits.
Other levels to watch on the downside are the $2.50 psychological level and the 100-day EMA at $2.27.
