Optimism (OP), a layer-2 scaling solution for Ethereum, has witnessed a remarkable surge of nearly 40% within a span of 48 hours, starting from Monday, June 19.
The rally was fueled by enthusiastic buyers, indicating sustained demand for the token. Furthermore, the bullish outlook of Bitcoin (BTC) has added to the positive sentiment in the altcoin markets. However, there remains a possibility of a pullback if a key support level is breached.
Bullish Market Structure
The H4 market structure of Optimism ($OP) has been firmly bullish. On June 13, the token formed a lower high at $1.2. However, just a week later, on June 20, the bulls successfully breached this level, signaling their strong intent.
The subsequent surge in prices was accompanied by a notable increase in trading volume and the On-Balance-Volume (OBV), indicating robust demand and a solid short-term uptrend.
Key Resistance Levels to Watch
Analyzing the daily timeframe chart, we identify several crucial resistance levels for Optimism. These include $1.48, $1.55, and $1.67.
Notably, the token faced rejection at the $1.48 level and made another unsuccessful attempt to breach it, stalling at $1.45. As a result, prices retraced to the $1.34 level, which currently serves as a short-term support level.
