Optimism’s market structure is beginning to show signs of stabilization after a prolonged downtrend that has weighed on the token throughout 2024.
Recent Elliott Wave analysis highlights a possible completion of the corrective phase, with early indications pointing to a gradual bullish reversal.
The setup suggests that the next macro impulse could take shape over the coming quarters, provided the token maintains its support structure within the current accumulation range.
Elliott Wave Projection Hints at Bottom Formation and Macro Uptrend Setup
According to a detailed Elliott Wave analysis shared on X, the OP/USDT pair appears to be finalizing Wave (B) within a broader corrective pattern, setting the stage for a potential Wave (C) bullish impulse. After falling sharply from the 2024 highs near $4.90, the coin seems to have bottomed within an extended accumulation range between $0.60–$0.80.
Source: X
This zone is being interpreted by analysts as the terminal point of the major corrective leg — a structural base that often precedes significant uptrend reversals. The projection indicates that the next major move could extend toward the $1.50–$2.00 range during the initial phase of recovery, forming the early waves of a larger impulsive pattern.
Wave count projections suggest a potential five-wave sequence developing from the recent bottom, with $1.20 emerging as a critical resistance aligned with previous liquidity clusters. If the coin sustains momentum through this level, it could confirm the start of Wave (3), historically the most powerful phase in Elliott Wave structures.
Market Data Confirms Weak Market Conditions Amid Recovery Attempts
Data from BraveNewCoin shows Optimism trading at $0.46, down 5.72% over the past 24 hours. The token maintains a market capitalization of $814.94 million with a 24-hour trading volume of $136.35 million, ranking #128 among global cryptocurrencies.
Source: BraveNewCoin
The market remains subdued following a multi-week decline, reflecting the lingering impact of risk-off sentiment across the altcoin sector. Despite this, the token’s stability above the $0.45 level indicates initial accumulation by patient holders awaiting confirmation of trend reversal. While liquidity has thinned, the data suggests steady engagement within spot markets, signaling early recovery interest from long-term participants.
Technical Indicators Suggest Gradual Stabilization After Sharp Correction
A daily chart of Optimism from TradingView shows that the token has entered a consolidation phase near $0.45 after retreating from $0.80 earlier in the month. The steep decline was largely driven by liquidation pressure, but the sideways structure that followed now reflects an effort by buyers to stabilize the market and defend local support.
Source: TradingView
The Chaikin Money Flow (CMF) reading of +0.12 points to mild but positive capital inflows, indicating that accumulation is beginning to re-emerge at lower levels. Sustained CMF readings above zero could strengthen confidence in a short-term rebound as buyers gradually rebuild exposure.
Meanwhile, the MACD remains in the negative zone, with red histogram bars signaling continued bearish dominance. However, the contraction in the histogram suggests fading downside momentum, a potential precursor to convergence between the MACD and signal lines. Such alignment could indicate the start of a relief phase or even the early stages of the projected impulsive recovery wave.
