Layer 2 Solution Optimism (OP) Positioned for a Major Price Breakout, Market Analyst Says

Layer 2 solutions are expected to note major growth in the coming months, according to market analyst Michaël van de Poppe.

Optimism (OP), a prominent Layer 2 protocol, might be gearing up for a significant price breakout, according to market analyst Michaël van de Poppe. In fact, Poppe is optimistic that the token is setting the stage for a potential move towards the $3 price mark.

In a recent analysis, Poppe highlighted key levels to watch for OP. He stated, “Once it reaches the $1.80-1.90 range, a breakout to $3 is likely.”

Moreover, he noted the ongoing accumulation and rising higher lows as early signs of a bullish trend, paving the way for a potential move north.

Chart analysis: Higher lows and a crucial resistance zone

A glance at OP's price chart reveals that the token has largely been trending downwards. However, it seems to be building a base around its current levels.

A technical analysis suggests an accumulation phase, characterized by the creation of higher lows - a sign of strong buying interest. The price is also approaching a resistance zone around $2.27, which is a crucial breakout area.

If the price manages to break through this resistance, it could shift market sentiment towards a more bullish outlook.

Furthermore, the presence of an ascending trendline adds support to the possibility of a breakout. On the price chart, momentum appears to be steadily building as buyers absorb selling pressure, creating a strong foundation for a potential move upwards.

OP price might be targeting $2.68-$2.80 after breakout

In the event that OP breaks above the $2.27 resistance zone, the next potential target is estimated to be between $2.68 and $2.80. This target range represents an 18% profit opportunity from its press time breakout point.

This area could serve as a new resistance level, as traders may look to take profits within this range. The market has also been showing signs of a bullish buildup, as the price continues to consolidate near the horizontal resistance.

On-chain metrics : Rising network engagement, large holder activity

Recent on-chain data from IntoTheBlock supports the optimistic outlook for OP. Over the past week, new addresses have risen by 32.21%, active addresses by 50.19%, and zero-balance addresses by 22.56%, indicating rising network engagement.

Despite this growth, the token’s price remains relatively stable, suggesting that the network expansion may be laying the groundwork for a bullish trend.

Moreover, large transaction volumes fluctuated between 1.5k and 2.07k over the past week, with a slight decline towards the week's end. This trend indicates sustained interest from major holders, although the dip might reflect caution or potential profit-taking.

Exchange netflows suggest potential short-term selling pressure

The exchange netflows for large holders of OP have risen by 470.01% over the past week, indicating that more tokens are moving to exchanges. This could signal potential selling pressure in the short term.

On the other hand, the 30-day and 90-day netflows have been heavily negative, suggesting prior accumulation and longer-term bullish sentiment.

Finally, data from DeFiLlama reveals that Optimism's Total Value Locked (TVL) stood at $684.51 million at press time, with a stablecoin market cap of $1.01 billion.

Also, over the last 24 hours, the network recorded $13,070 in fees and $12,901 in revenue, alongside $11.27 million in inflows. Together, these metrics indicate steady growth in the protocol's ecosystem amid ongoing user interest.