OP – the native token of one of the major layer-2 networks Optimism – has witnessed a more than 22% surge in the past week alone owing to the crypto market rally. At the time of writing, the asset is trading near $1.70 as it forms an ascending triangle pattern.
Experts suggest that this pattern could push its price higher.
OP’s Bullish Breakout Potential
According to popular crypto analyst Ali Martinez’s latest tweet, OP has historically demonstrated a tendency to form market bottoms through the pattern of ascending triangles, which are typically followed by significant price rallies. This technical formation suggests that a breakout is likely once the price reaches the upper boundary of the triangle.
In previous instances, these breakouts have propelled OP towards the 1.618 Fibonacci retracement level, signaling a potential target price. With the token showing a similar setup, the price appears to reach a bullish target of $7.20, representing a potential 340% gain. If the pattern holds, this could signal a major upward move in the near future.
OP Stack Adoption Grows Rapidly
As OP shows bullish technical signals, it’s important to highlight the broader developments driving its market momentum. On the technical side of things, Optimism continues to garner attention as a Layer 2 scaling solution for Ethereum, leveraging its optimistic roll-up technology to enhance transaction speeds and reduce fees compared to ETH’s base layer.
This has attracted notable partnerships, including Coinbase’s adoption of the OP Stack for its own Layer 2 blockchain, Base, and rival exchange Kraken’s announcement of its network, Ink. Other popular entities include leading decentralized exchange Uniswap and global electronics leader Sony, which is already utilizing the OP Stack.
More recently, liquid restaking protocol Swell also announced that its Layer 2 is migrating to the Optimism Superchain, abandoning its initial plans to use Polygon’s CDK.
Data compiled by L2Beat revealed that Optimism still lags behind its competitor Arbitrum in terms of total value locked (TVL) across Ethereum’s Layer 2 platforms, holding slightly more than $7 billion, compared to Arbitrum’s $16.06 billion.
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