- OP crypto price surged 9.94% during the weekly trading session.
- Technical indicators summary suggests a bearish signal in the current phase.
- The trading volume of Optimism crypto has increased over 60% in the last 24 hours.
Optimism (OP) is one of the most important scaling solutions for the Ethereum blockchain. It is a Layer-2 blockchain on top of Ethereum with over $500 million total value locked (TVL).
The Layer-2 blockchain offers bridging tokens from Ethereum to L2 and adding chains on their Metamask. The Optimism scales the Ethereum ecosystem with the help of rollups, which record transactions on Layer-2 but are ultimately secured on Layer-1.
Optimism May 2024, Supply Changes, Valuation & Distribution
Optimism has released 1.04 billion tokens in current circulation. The maximum supply for the OP tokens is capped at 4.29 billion. The current circulation supply covers 24.32% of the total coins created. It has a current market capitalization of $2.84 billion, ranking 38th out of 9,852 active cryptocurrencies.
OP crypto registered itself under the top 40 most dominant cryptocurrencies across the globe. At present, it reflects higher liquidity in popular exchanges with a volume-to-market cap ratio (VMR) of 23.33%. The trading volume has reached over $639 million, with an increment of 60% in the last 24 hours.
OP tokens have been distributed in five vast categories follows as; 20% were allocated to RPGF, 17% to the investors, core contributors have 19%, 19% to the Airdrop, and the remaining 25% preserved for the ecosystem fund. 1.16 million wallets are currently holding OP tokens, of which the top 3 holders own 53.21% of the circulation supply.
Price to Volume and Social Dominance Analysis
The crypto got praise across social media platforms in Dec 2023. At that time, the social upsurge in tweets covered 3.5% dominance across the globe. That positively impacted the volume as well as the price, which has been rising in a broader look.
Since Jan 2024, the Optimism crypto social sentiments have been slowly fading, currently covering 1.76% dominance. However, the trading volume is unaffected by the decline in social dominance, and it is rising in the current phase.
Technical Analysis of the Optimism (OP/USD)
The short-term outlook lies below the key exponential moving averages on the bearish side. The current price slipped below the 50-day and 200-day EMA, indicating bearish sentiments in technical terms.
Optimism price has given a breakdown from the $2.62 key support level. Afterward, the price fell to the $1.82 demand level and is currently retesting the $2.62 support level.
If the OP price manages to close above the $3.41 level, then it may reach the $4.03 mark. However, the price is experiencing a downtrend; it can also fall on the $1..82 level.
The relative strength index (RSI) shows internal bullish divergence in the current trading phase. The RSI and the SMA lines had a golden crossover, indicating a potential shift in strength and momentum.
Summary
Since March 10, the Optimism crypto price has been facing heavy profit bookings. The crypto has recorded over 40% decline in value. At press time, the OP price is retesting the $2.62 support level.
If the OP price manages to close above the $3.41 level, then it may reach the $4.03 mark. However, the price is experiencing a downtrend; it can also fall on the $1..82 level.
Technical Levels
- Resistance Levels: $2.62 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.