Key Metrics Reveal Sharp Growth

Optimism (OP) is a Layer-2 Ethereum scaling protocol. It aims to increase Ethereum’s transaction throughput while decreasing costs via Optimistic Rollups.

Its native token (OP) witnessed an intense rise of over 5.29% intraday and is highlighting the bull accumulation. The OP token has retested the 20-day EMA mark and is looking for a rally ahead.

Followed by the strong first quarter Q1 (2024) numbers, the Optimism Network (OP) token has set its path to skyrocket the gains in the next sessions.

Likewise, the majority of key metrics reflected the Quarter-on-Quarter (QoQ) growth, which might lead the OP token toward a higher trajectory soon.

At press time, the Optimism token (OP) price traded at $2.583 with an intraday spike of 5.10%, reflecting fresh buying momentum on the charts. It has a monthly return ratio of 19.20% and 48.38% yearly, revealing the short-term bullish trend.

The pair of OP/BTC is at 0.0000385 BTC, and the market cap is $554.51 Million. Analysts are neutral and suggest that the Optimism price may spread the up move and will skyrocket gains in the upcoming sessions.

Analyst Expects a Breakout Ahead: What Does the Price Action Indicate?

Per the Santiment data, the Optimism token has crossed the 20-day EMA mark above $2.40 and picked momentum. Since the beginning of this month, positive inflows have been noted. 

The token displayed a higher high sequence and was eyeing to reach the $3 mark. The Relative Strength Index also represented a positive crossover in the last session.

Source: Santiment

In a recent tweet by @WorldofCharts, he expected a big move on the OP token. He says that the OP token has rebounded from the lower trendline support mark of $2 and made a bullish pennant formation. 

A break and close above the $2.80 mark might register a breakout, and the token will reach up to the $5 mark soon.

Source: Twitter

Unveiling Optimism Q1 2024 Performance: On-Chain Analysis

The Optimism Network has glimpsed remarkable growth in the first quarter of 2024. Per the Messari data, the circulating market cap of the OP token noted a rise of over 11% QoQ, surging to $3.70 Billion.

While the fully diluted market cap surged to $15.7 Billion, a rise of over 1% QoQ was recorded.

Source: Messari

Optimism Network noted a growth in the daily active addresses data, which reached 89,000 (+23% QoQ), and daily transactions grew to 470,000 (+39% QoQ).

Source: Messari

A Surge in Total Value Locked (TVL)

Source: Artemis

From the start of May, the TVL of the OP token kept rising and witnessed a surge of over 32% to $801.90 Million, highlighting a positive outlook.

A Sharp Spike in the Development Activity: What Does It Mean?

For weeks, the development activity data of the token was noted to have a consistent rise and revealed growth.

The OP token has a downside capped until the $2 mark, whereas on the higher side, significant room was visible to spread the gains.

Futures Data Highlighted Massive Long Add-ons

Source: coinglass

Followed by the price surge, the futures data represented the fresh long buildup activity. The open interest data revealed a rise of over 5.32% to $140.47 Million, signifying investor speculation.

The immediate support levels for the Optimism (OP) are $2.40 and $2.20, whereas the key upside hurdle is around $3, followed by $3.20

Conclusion

The Optimism Network (OP) token shifted its gains from the lower region to the midline region and noted a rise this week. Moreover, the key metrics revealed sharp growth and suggested outperformance in the next sessions.

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. 

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.