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- IMX might retrace to $3.40, while OP could extend its gains toward $5.
- Buying pressure might validate ARB’s move to $3, and MNT could hit $0.81.
- MATIC bulls might push for a 43% increase, which could send the price to $2.
The optimism about a potential Ethereum (ETH) ETF approval has fueled speculation that Layer 2 tokens could be ready to rally. According to Coin Edition’s assessment of the market, some of the tokens with this potential include Polygon (MATIC), Immutable (IMX), and Optimism (OP). Others include Arbitrum (ARB) and Mantle (MNT).
From the 4-hour MATIC/USD chart, the token had attempted to hit $1.05. However, the resistance at $1.03 ensured that the effort was futile. But bulls have capitalized on the drop to $0.92 by pushing MATIC back to $0.97.
If the price breaks through the $1 psychological level, a massive breakout could be next. Indications from the 4.23 Fibonacci level showed that the token could extend toward $1.40. Should bulls keep up with the buying momentum displayed by the RSI, then a 43% increase could be possible.
But if the buying pressure slows down, MATIC might consolidate between $0.90 and $0.95. However, if ETH moves toward $3,500, MATIC’s price might head toward $2.
MATIC/USD 4-Hour Chart (Source: TradingView)
As an Ethereum L2, IMX has shown a strong correlation with ETH. For instance, ETH’s price increased by 7.92% in the last seven days, and IMX also jumped by a similar percentage within the same period.
A look at the 4-hour IMX/USD showed that bulls had held on to the support at $3.20. In the same vein, IMX breached the $3.40 resistance. Indications from the Awesome Oscillator (AO) showed that the reading was positive, suggesting increasing upward momentum.
In a highly bullish scenario, IMX’s price might climb toward $5. But if sellers pulled down the price, IMX could drop to $3.40. If this happens, it could be a point to accumulate before the price pumps again.
IMX/USD 4-Hour Chart (Source: TradingView)
OP’s market structure revealed that it was trying to approach the $4 resistance one more time. Previously, OP hit $4.12, but moments later, the token faced a sharp rejection, which sent it to $3.60.
However, the price had recovered and was changing hands at $3.84 at press time. Coin Edition’s analysis of the EMAs showed that the 9 EMA (blue) and 20 EMA (yellow) were close to each other.
If OP breaks below the 9 and 20 EMA, the price could drop back to $3.60. However, if bulls sustain the pressure, OP could extend its gains beyond $4.12 in the short term.
OP/USD 4-Hour Chart (Source: TradingView)
The 4-hour ARB/USD pair showed that sellers had become exhausted. As a result, bulls took advantage of the fatigue, pushing the price up to $1.89. However, ARB could face a hurdle at $2.13.
If ARB breaks through the level, the cryptocurrency might rise as high as $2.65. But rejection around $2.13 could force the price back below $2. For the time being, the MACD showed that a further increase was unlikely.
This was because the MACD reading was negative, suggesting bearish momentum. Furthermore, the Chaikin Money Flow (CMF) was also negative. This indicates impending selling pressure.
ARB/USD 4-Hour Chart (Source: TradingView)
From a bearish point of view, ARB could drop to $1.55. However, if buying pressure comes in, a move toward $3 could be validated
Like ARB, MNT had just experienced some form of selling pressure. At press time, bulls were looking at driving MNT above $0.80. Signals from the Bollinger Bands (BB) showed increasing volatility, indicating that the token price could fluctuate higher.
MNT/USD 4-Hour Chart (Source: TradingView)
In a very bullish case, MNT might climb to $0.81. In addition, the RSI reading had increased to 56.58. If the reading continues to increase, it would mean market participants are buying more MNT. Should this be the case, MNT’s price might extend to $1 in the mid-term.
The post Ethereum Layer 2 Tokens Poised for Pump? Here Are the Targets appeared first on Coin Edition.