- The Optimism crypto price declined 28.90% during the weekly trading session.
- Technical indicators summary suggested a bearish signal in the current phase.
- The trading volume of OP tokens has reached $225.96 million in the last 24 hours.
Optimism (OP) is a layer-2 blockchain with one of the most prominent scaling solutions for the Ethereum network. The layer-2 blockchain is secured by the Ethereum mainnet. The transactions recorded on Optimism are secured on Ethereum by using optimistic rollups. User can add chains on their Metamask and bridge tokens such as Ethereum to the Layer-2. Additionally, the Layer-2 blockchain is home to the 97 protocols.
Optimism Crypto has Left 73.22% Six Months Positive Returns
On November 4, 2023, OP crypto price gave a breakout from a major trendline that has been forming since February 2023. The crypto price reflected over 180% bullish rally after the breakout. Afterward, the price rose to a resistance of $4.32, and some of the earliest profit-keeping practices were experienced.
Consequently, the Optimism price fell on the $2.62 bullish point of interest (POI) in the form of a major bullish correction. Crypto traders waited for the right opportunity and entered their long positions on the POI. This resulted in an upsurge of over 85% to the $4.86 key resistance. Afterward, the OP crypto faced mass selling to date.
Optimism has released over 1.04 billion tokens in current circulation, which hardly stands at 24.34% of the maximum supply. The overall supply of cryptocurrency is capped at $4.29 Billion, and the full diluted valuation is estimated at around $9.36 billion. The current market capitalization stands at $2.27 Billion.
Price to Volume and Social Dominance Analysis
OP crypto started buzzing on social platforms in November 2023, covering over 3.31% dominance worldwide. That reflected positive impacts on trading volume and crypto price, which increased strong social sentiments. However, social dominance has been in a constant decline since January 2024, but the volume and price remain impactful in the current sessions.
Technical Analysis (OP)
The current price has crossed below the key exponential moving averages. This indicates the bearish sentiments in the crypto price in terms of technicals. The 200-day EMA can act as a dynamic resistance in the upcoming sessions.
Optimism price faced resistance from the $4..86 level on March 6, 2024. The price gave a breakdown from the $2.62 key support level afterward. It fell on the $1.82 bullish point of interest (POI). Regarding the technicals, the price will continue to fall further unless it closes above the $3.80 level. $1.49 would be the next stop for the bearish rally.
Moreover, the relative strength index (RSI) is showing bearish momentum in the current phase. However, the RSI line is moving at 30.89 from the oversold area, which can lead to a shift in momentum.
Summary
Optimism crypto has shown enormous bullish strength after October 2023. However, the price faced heavy selling from the $4.86 resistance level, which led to a decline of almost 55% to date. OP token price will continue to fall further unless it closes above the $3.80 level. $1.49 would be the next stop for the bearish rally as per the technicals of the market.
Technical levels
- Resistance Levels: $3.41 and $4.03
- Support Levels: $1.82 and $1.49
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or any other advice. Investing in or trading crypto or stock comes with a risk of financial loss.