Optimism Price Rebounds After 13% Drop: Could Airdrop Trigger a 23% Surge to $2?

Optimism Price Rebounds After 13% Drop: Could Airdrop Trigger a 23% Surge to $2?

Optimism’s (OP) price is gradually recovering after experiencing a significant 13% decline between October 7 and 10, largely due to unfavorable market conditions. The Optimism Foundation’s announcement of a new airdrop, combined with the release of unexpected U.S. Consumer Price Index (CPI) data, initially contributed to this price drop. However, recent trends suggest the OP price is bouncing back. The question now is: could this airdrop spark a 23% rally, pushing OP to the $2 mark?

How Will the 10 Million Token Airdrop Impact Optimism’s Price?

On October 9, the Optimism Foundation revealed plans for its 5th airdrop, which will distribute 10.3 million OP tokens to 54,000 eligible addresses. Shortly after the announcement, OP’s price plummeted by 11%, mirroring the broader crypto market decline. However, recent market movements hint at a potential bullish shift, with optimism returning as investors eye potential gains in the days ahead.

According to data from IntoTheBlock, the number of active addresses on the Optimism network surged to 38,000 after the airdrop announcement, marking the highest level seen in the last year. Alongside this, the rise in zero-balance addresses indicates that many of the recipients sold their tokens shortly after the drop, which may explain the initial price dip.

Despite this, OP is showing signs of recovery, having formed the left leg of a possible double-bottom reversal pattern—a bullish technical indicator.

Currently, OP has risen by 3.8% over the past 24 hours, bringing the price to $1.58.

OP Price Analysis: Can It Hit $2?

The OP price chart reveals the development of a double-bottom pattern, a key signal of potential trend reversal from bearish to bullish. The neckline of this pattern is around $1.73, a crucial resistance level. A successful breakout above this price would confirm the bullish reversal, likely leading to further upward movement.

A bullish candle has formed on the right leg of the double bottom, suggesting that buyers are starting to re-enter the market. If OP maintains this momentum, the next critical move would be a breakout above the neckline at $1.73.

The Relative Strength Index (RSI) currently sits at 47, trending upward. If it crosses the 50 threshold, it would indicate diminishing selling pressure and a potential full-scale rally for OP.

The projected price target for this double-bottom breakout lies between $1.90 and $2.00, based on the height of the pattern (measured from the neckline to the lowest point). If the bullish reversal holds, OP could potentially retest the $2 mark and, under strong buying pressure, aim for further gains up to $3.17.

However, if Optimism fails to break through the $1.73 resistance, the price may consolidate or pull back to retest lower support levels. The nearest support is around $1.47, which aligns with the low point of the double-bottom pattern. A break below this level would invalidate the bullish outlook, signaling that bears still maintain control of the market.