Key Takeaways:
- Optimism price has plunged hard by more than 50% since the yearly highs which may prevail for some more time as the bearish clouds continue to haunt the OP price rally
- The bulls are displaying acute weakness as the buying volume has dried up to a large extent which may lower the pace of the rally in the coming days
- The declining levels indicate the price to maintain a notable drop for some time which may be flipped by the bulls shortly
The Optimism price has been extremely bullish since the beginning, as it has been highly impacted by various reasons related to the Ethereum upgrades. After undergoing a good upswing since the start of the year, the price is witnessing a significant pullback. The OP price has plunged by more than 50% presently, which may be offering a ‘buy the dip’ opportunity for traders.
Currently, the Optimism (OP) price has been witnessing a major drain, that may drag the price extremely low to reach the lower support. Meanwhile, the bulls, who are pretty passive at the moment, are believed to rise nicely as market conditions flip in their favor. Once done, the OP price may resume with a fine upswing to reach the interim resistance at $2 initially and later at $2.5.
Optimism (OP) Technical Overview
Source: Tradingview
- The OP price has been trading within a symmetrical triangle and trying to trigger a bounce from the lower support
- The RSI has plunged down heavily and continues to head toward the oversold level which may lower the price
- Alongside, the ADX is displaying some strength due to which the price may trigger a bullish rebound by holding strongly at the lower support
- With a rebound, the price could rise high and test the interim resistance at around $2.3, surpassing the critical levels at $2
Read more: Optimism Price Predition
Optimism (OP) On-Chain Overview
Optimism Daily Active Address
Source: Santiment
The daily active address is nothing but the address count of those addresses that have interacted with the platform to carry out a trade. The addresses that have placed buy, sell, or swap orders are considered active addresses but are counted only once daily. The rise or drop in the DAA levels emphasizes the platform’s overall health, highlighting its adoption and attention rates.
The daily active address of has seen a considerable drop in the past few days. The levels have now dropped below 10,000, displaying a drop in user activity. This may broadly impact the OP price which has been dropping steadily for the past few days.
Optimism (OP) MVRV-Z Score
Source: Santiment
The MVRV-Z score compares the market value and the realized value of the token to determine when the value of the token is undervalued or overvalued. This is done by comparing the current value with the fair value of the token. Whenever the market value is higher than the realized value, it indicates the market top, and the bottoms are indicated in the other case.
The MVRV Z-score has been trading within negative regions for quite some time but has been maintaining a notable rise, heading toward average levels. The score had dropped to -29.47 during the mid of Q1 2023 but has been rising consistently to reach the current levels around -15, indicating active participation of the bulls of let.
Optimism (OP) Weighted Sentiment
Source: Santiment
The value of the token is largely dependent on market sentiment, which may be positive or negative. The weighted sentiments combine all these sentiments and compare them with the frequency of their occurrence over time. Therefore, if the weighted sentiments are in the positive ranges, then the positive sentiments have been prevailing around the token, which may keep the price higher.
Unfortunately, the weighted sentiments of optimism have been trading within the negative regions, indicating market participants could be bearish on the crypto. This may inversely impact the value of the crypto, which may remain within the bearish range.
Additional Read: Polygon vs Arbitrum vs Optimism
Concluding Thought
Optimism price has been considerably bullish since the beginning but has also been displaying strength as it triggers a strong rebound each time. Moreover, the declining fractals also indicate the declining dominance of the token within the market. Hence, the OP price is believed to maintain a descending consolidation for some more time ahead.
