The cryptocurrency market, with Bitcoin at the forefront, is maintaining a rapid growth trajectory, yielding substantial profits for many investors. The forthcoming Dench update in the Ethereum ecosystem is anticipated to be a pivotal event for Layer-2 networks. The focal points of this period include the potential advancements for both OP and TAO tokens.
Optimism’s Bullish Climb
Optimism (OP) has been climbing steadily in recent days. The token’s price surmounted the significant resistance level at $4.20, signaling a bullish reversal with an inverse head and shoulders pattern on March 5th. With the 20-day Exponential Moving Average (EMA) at $4.12 and a positive Relative Strength Index (RSI), the trend suggests further upward movement. A surge past the $4.87 threshold could propel the OP/USDT pair to reach the anticipated $5.79 target.
However, a sharp decline from current prices and a fall below the 20-day EMA could indicate a false breakout, potentially sending the price down to $3.42. A further drop beneath this figure would signal a shift in favor of the bears.
TAO’s Price Resilience
Bittensor (TAO) has recently retracted to a crucial short-term support level at the 20-day EMA of $646. A rebound from here would suggest that the bullish sentiment prevails, potentially leading to a breakout above $757 and an advance toward $846.
Conversely, slipping below the 20-day EMA average could reflect profit-taking by the bulls, and the TAO/USDT pair might then retreat to the 50-day Simple Moving Average (SMA) at $535. The bears would have to drive the price under this average to hint at a possible shift in trend.