The token’s latest structure signals that the market may be preparing for a directional shift, supported by improving momentum and a distinct technical formation visible on higher timeframes.

TOBO Formation Hints at Trend Reversal

In a recent X post, analyst Filiz highlighted that Optimism is displaying a TOBO (Head and Shoulders Bottom) pattern, a classic trend reversal formation that may mark the end of the prevailing downtrend. The chart identifies the left shoulder, head, and right shoulder clearly, suggesting a shift in market structure toward potential bullish momentum.

Source: X

According to the analysis, a close above the $0.8160 resistance would confirm the TOBO breakout, activating the bullish reversal signal and setting sights on higher price targets. In contrast, a drop below the $0.7420 support would invalidate the setup and likely trigger additional downside pressure.

Future resistance zones are also mapped out at $1.1443, $1.5203, and $1.2950, offering traders multiple targets should the pattern play out. For now, market participants are advised to monitor how the price reacts around these crucial levels. A breakout above resistance could open the door to a sustained upward phase, while continued rejections may keep the asset within its consolidation range.

Optimism Climbs as Buyers Regain Traction

According to market data, Optimism is currently trading at $0.75, marking a 2.85% gain over the past 24 hours. The token holds a market capitalization of $1.34 billion and a daily trading volume of $175.27 million, reflecting renewed investor interest following a series of range-bound sessions.

Source: BraveNewCoin

Despite the modest recovery, the market structure still faces resistance clusters that have capped prior rallies. A successful close above the $0.8160 resistance remains key to validating a trend reversal. Conversely, any rejection at this level could push the token back toward $0.74, where previous demand has consistently provided short-term support.

Technical Indicators: Neutral Momentum with Upside Potential

At the time of writing, OP was trading at approximately $0.7559, approaching the middle Bollinger Band, a region often considered a neutral pivot between bullish and bearish phases. Immediate resistance lies near the upper band at $0.8346, where traders expect increased selling pressure if buying momentum fails to strengthen.

Souurce: TradingView

The Chaikin Money Flow (CMF) indicator currently sits at -0.04, reflecting mildly negative money flow despite recent gains. This shows that while buyers have regained some ground, the overall sentiment remains cautious, with limited capital inflows. Sustained positive movement in CMF would provide stronger confirmation of a potential trend reversal, aligning with the TOBO formation identified earlier.

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Filed under: Bitcoin - @ October 6, 2025 9:24 pm