Optimism Price Eyes Breakout as Falling Wedge and 8% Surge Signal Rally

Optimism is showing promising technical signs, with a notable 8% price surge and a long-term falling wedge pattern pointing toward a potential breakout.

Recent charts reveal buyer interest strengthening amid compression in price action, suggesting that the token could be gearing for a sharp upward move if key resistance levels are surpassed. Traders are watching closely as the token approaches a decisive inflection point.

Falling Wedge on Weekly Chart Signals Bullish Reversal

A weekly chart shared by Solberg Invest (@SolbergInvest) highlights OP’s formation of a large falling wedge—a price pattern often considered bullish. The wedge, defined by descending resistance and support, features lower highs and lows, but momentum is waning, indicating seller exhaustion. This setup typically precedes a reversal, where price breaks out above the wedge’s upper boundary.

Source: X

Should the memecoin break above this resistance trendline, the chart projects a strong move toward the $3.00 to $4.00 range, signaling a potential sustained rally if volume and momentum support the move. However, traders should be cautious, as failure to clear resistance could lead to extension of the downtrend and further decline.

Volume Surge Supports Short-Term Bullish Bias

Recent 24-hour data from BraveNewCoin shows OP climbing 8.28% to about $0.77, fueled by a sharp volume increase to $306.65 million. This growing liquidity validates the strength of the upward move, reflecting renewed market interest. Intraday volatility saw price spike close to $0.80 before pulling back, illustrating seller presence near local highs but also strong demand.

Source: BraveNewCoin

Sustaining above $0.80 would sustain bullish momentum and could open doors to higher short-term targets. Despite recent gains, the asset remains significantly undervalued relative to its previous peaks, attracting speculative accumulation. Ongoing buying pressure will be critical in confirming a resumption of the uptrend.

From a broader perspective, the cryptocurrency remains undervalued compared to its past highs, making these accumulation zones attractive for speculative investors. However, sustained buying pressure will be needed to confirm a stronger uptrend.

Bollinger Bands and MACD Show Tipping Point for Momentum

On the other hand, TradingView’s technical indicators reveal OP trading close to $0.7768, near the upper Bollinger Band at $0.8444, suggesting potential resistance ahead. Support near the Bollinger midline at $0.7452 continues to hold, indicating underlying bullish pressure.

Source: TradingView

The MACD is in the early stages of a bullish crossover, with the MACD line nearing the signal line and a narrowing negative histogram, signaling waning bearish momentum.

Should the cryptocurrency break and maintain above the upper Bollinger Band, volatility could expand, potentially driving price gains to between $0.90 and $1.00. Alternatively, failure to break resistance may prompt a retest of the $0.74 support zone.

The memecoin poised technical setup, combined with volume-fueled gains, positions it on the edge of a meaningful breakout. Market participants should closely observe the $0.80 resistance level and indicator signals for confirmation of sustained bullish momentum or potential pullbacks.