Optimism is a Layer 2 Optimistic Rollup network designed to utilize the strong security guarantees of Ethereum while reducing its cost and latency. In today’s article, we’ll take a look at the technical chart for its token $OP and explore the potential bullish path based on the Elliott Wave Theory.
$OP saw an impressive 445% rally from June 2023 ending wave ((1)) in March 2024 at $4.8. Down from there, a correction took place within 3 swings structure in wave (2). The token reached our extreme blue box at equal legs area $2.1 – $0.9 from where we expect the coin the end the decline and start the next leg to the upside or at least react higher in 3 waves bounce.
The initial impulsive rally from 2023 low is suggesting that $OP should remain supported during corrective pullbacks in 3 , 7 or 11 swings and consequently Investors should be looking for Long entries as the market is getting ready to resume the bullish trend to the upside.
Optimism $OP daily chart 4.26.2024
Setup Recap
-Time Frame: Daily.
-Entry Area: $2.1 – $1.7.
-Invalidation Condition: Daily Close below $0.9.
-Targets/Ratio: Target 1 at $8.2 (4.88 RR) – Target 2 at $14.6 (10 RR).
Source: https://www.fxstreet.com/news/optimism-op-bulls-are-getting-ready-to-take-over-202404291130