Can $10 Million OP Airdrop Send Optimism Price to $2?

Optimism price is recovering from a significant 13% drop between October 7 and 10, fueled by general market conditions. The announcement of an Optimism airdrop from the Optimism Foundation, coupled with the unexpected U.S. CPI data, initially had negative effects on the price. However, the OP price has begun to recover. Could the airdrop launch trigger a 23% rise to $2?

How Will A 10M Airdrop Impact Optimism Price?

On October 9, the Optimism Foundation announced its 5th airdrop, in which 10.3 million OP tokens will be distributed to 54,000 addresses.

🔴 Use the Superchain, and reap the benefits 🔴

Today, @Optimism unveils Airdrop #5:

Onchain together, benefit together.

10M+ OP has been allocated to 54k+ unique addresses.

As of today, roughly 550M OP remains for future airdrops. pic.twitter.com/TCS1oSXKBs

— Optimism (@Optimism) October 9, 2024

Following the announcement, the OP price dropped 11%, influenced by the general fall in crypto prices. However, price action has turned bullish, showing hopes for higher prices in the coming days. 

According to data from IntoTheBlock, the Optimism network’s active addresses soared to 38,000 after the announcement. This is the highest level in the last one year. 

The number of zero-balance addresses also increased, suggesting a portion of the 54,000 addresses that received the airdrop sold. This may explain why OP price dropped. Optimism price is showing bullish signs after forming the left leg of a double-bottom reversal pattern.

The OP price has increased by 3.8% in the last 24 hours and is trading at $1.58. 

OP Price Analysis: All Eyes on $2, But There’s  A Catch

The OP price chart shows a bullish reversal pattern forming, specifically a double bottom. The formation of this pattern suggests a potential bullish reversal from the current downtrend. The neckline is marked around $1.73, a key resistance level.

Breaking above this neckline would confirm the reversal and potentially lead to significant upside movement.

A bullish candle is forming off the second low (right leg), showing buyers stepping in. If the Optimism price continues upward, the next major move is a breakout through the neckline.

Additionally, the relative strength index (RSI) is at 47 and headed upward, signaling that sell momentum on OP is dropping. If it breaks 50, it will signal a full-on rally has begun on Optimism.

The projected price target for this double-bottom breakout is around $1.90—$2.00, based on the height of the pattern (the difference between the neckline and lowest point). If the bullish reversal holds, the price could retest $2.00 and move higher to $3.17. 

Optimism price analysis chart

If the Optimism price fails to break above $1.73, we could see the price consolidate or retest lower levels. The lower support area is around $1.47, representing the lows of the pattern and potential strong support level. If the price falls to this level and breaks below, it could invalidate the current bullish thesis, as it would show bears still have control of the market.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.