After months of decline and low volatility, momentum indicators now suggest that the worst may be behind, with early technical cues hinting at a potential shift in direction.
Market watchers believe that if this emerging base holds, Optimism could stage a steady recovery toward the $5 mark by late 2025, backed by improving on-chain activity and renewed interest in Ethereum Layer-2 ecosystems.
Bulls Step In as Optimism Attempts to Reclaim Ground from Recent Lows
The daily chart shows OP attempting to curl upward from its local lows after an extended downtrend that began in mid-September. Price action has started to compress above the $0.40 support level, which has become a critical area for defending against deeper retracements. Buyers are showing increasing interest each time the price tests this range, signaling accumulation behavior typical of a bottoming pattern.
Source: X
Volume data confirms that selling intensity is gradually easing after the steep correction earlier in the week. A noticeable cluster of green candles suggests that short-term traders are re-entering, hoping to capitalize on the possibility of a rebound. The key resistance now sits near $0.55, and a clean breakout above this level could pave the way for a retest of $0.70 before the end of the month.
Market the coin stems from the view that the coin’s structure is beginning to mirror early recovery setups seen in past cycles opsharp capitulation followed by a slow grind higher. If the bullish curl continues to form, analysts project a potential medium-term climb back toward $1.50–$2.00, setting the foundation for a long-term move toward $5 by late 2025.
Market Metrics Indicate Cooling Pressure and Early Stabilization
Current data places OP’s market capitalization at $741.7 million with 24-hour trading volume near $216 million. The asset’s 24-hour loss of 9.5% may appear steep, but when viewed within context, it reflects the tail end of a liquidation phase rather than ongoing panic. The gradual compression of volume and price indicates that most speculative excess has been flushed out.
Source: BraveNewCoin
Historically, such phases of volume contraction and horizontal movement have often preceded structural recoveries in Layer-2 tokens. The broader ecosystem remains active, with the token’s underlying rollup network maintaining robust transaction throughput and steady developer participation. This ongoing utility provides a fundamental floor beneath the current technical setup.
Technical Indicators Support Early Signs of Recovery Momentum
Technically, Optimism’s daily chart presents an encouraging combination of signals. The Chaikin Money Flow (CMF) sits at +0.08, showing mild but positive inflows — a potential sign that capital is beginning to return to the market. The MACD remains below the neutral line, but its histogram is tightening, suggesting a fading bearish impulse. A crossover between the MACD and signal line in the coming sessions could confirm a short-term bullish reversal.
Source: TrdaingView
From a momentum perspective, the coin’s ability to hold above $0.40 is crucial. Sustaining that level through the next weekly close would validate the accumulation thesis and likely trigger a gradual trend reversal. Should the token manage to reclaim the $0.70 zone and convert it into support, the pathway toward $1.50 in early 2025 and eventually $5 by year-end becomes technically feasible.