Optimism (OP) price has been declining since bears halted the uptrend after the formation of a high at the $1.829 level. The cryptocurrency price faced strong rejection above $1.80 which induced negative sentiment in the market.
Recently, Optimism price formed a support at $1.35 and regained bullish momentum in order to rise above $1.80 but the move was again disrupted by the bears at $1.60. OP price formed support at $1.42 and began its journey to rise above the $1.50 psychological level.
The previous candle closed as a bearish candle and faced rejection from $1.50. The current candle is slowly turning bullish and needs to break the high of a previous candle in order to retest the high of $1.60.
On the other hand, if the current candle breaks the low of the previous candle, it might melt down toward the next support level of $1.42 and potentially toward $1.35.
Token Unlock And Chain Activity Of Optimism
On 30th August, Optimism unlocked 24.16 tokens which is 3.37% of the circulating supply, worth $35.76 Million. The next unlock is scheduled for 30 September and 24.16 OP tokens will be unlocked which is also 3.37% of the circulating supply worth the same as the previous unlock.
This excessive supply of OP tokens might stagnate the growth of Optimism price. The token unlock could pose challenges to the potential growth of protocol going forward.
In the last 90 days, the daily active addresses of Optimism have observed a significant rise of 47%, reaching 95,268; which is a positive sign for the protocol. The daily transactions have also surged 24% to 384,054 in the last 90 days.
However, on 27 July 2023, the daily transactions increased to almost a million after which there has been a notable drop. The total value locked has taken a hit and dropped 17.2% in the last three months, amounting to $715.4 Million.
Will OP Price Rise Above $1.50?
The cryptocurrency price has dropped below 20, 50, 100, and 200-day EMAs, indicating bearish momentum. OP price is facing rejection from 20 and 50-day EMAs. Chaikin money flow (CMF) score has jumped above the 0 mark and currently trades at 0.07, suggesting a rise in strength.
The relative strength index is at 47.18 indicating increased participation of bears in the market. The long-short ratio of Optimism is 0.97 with 49.35% longs and 50.65% shorts which signals a bearish future due to the increased position of sellers in the last 24 hours.
Conclusion
The market structure and price action of Optimism have turned slightly bearish after the cryptocurrency price was rejected at $1.50.
Technical Levels
- Major support: $1.42 and $1.35
- Major resistance: $1.50 and $1.60
