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- 1 OP token price has broken the lower trendline support and is depicting selling pressure.
- 2 The technical indicators are suggesting a decline toward the $3 mark.
The Optimism token (OP) price is undergoing follow-on selling pressure and has slipped to the 100-Day EMA mark. Moreover, the token broke under a rising wedge pattern, losing momentum over the past few sessions. The price action signifies a rejection near the $5 mark and sellers have arrived and aggressively pushed OP price this week.
At press time, the Optimism crypto (OP) price was trading at $3.59 with an intraday drop of 5.15%, indicating selling pressure on the charts. It has a monthly return ratio of -6.74% and 32.80% yearly. The pair of OP/BTC is at 0.0000536 BTC, and the market cap is $773.74 Million. Analysts are neutral and suggest the OP crypto price will face further selloff and may retest the 200-Day EMA support zone soon.
Optimism In Sellers Control, Can Bears Push OP Below $3 Mark?
The chart shows that the token has eroded the initial gains and has slipped to the 100-Day EMA mark. Despite the market surge, the Optimism token has not participated and did not contribute gains, revealing the bearishness. Moreover, the trading volume remained on a lower note at around $375 Million; a drop of over 110% was reported this week.
Price Volatility On a Higher Note, Sentiments Remain Negative
The above data shows that the decrease in price along with an increase in volatility signifies that sellers have entered a battle and that investors might be panicking, triggering a correction phase in the last few sessions. Moreover, the volatility curve rose by over 220% to the value of 0.084 this week. Conversely, the total weighted sentiment noted a sharp fall of over 450% and the value slipped from a positive mark of 3.40 to a negative mark of -1.6.
Social Dominance and Investor Holding Analysis
Per the Santiment data, the token has witnessed average fluctuations in the social dominance and the social volume activity. The data reveals a neutral investor participation and the dominance value floats near 1.355%, whereas the social volume floats near 170. However, data of the total amount of holders signifies a steady move and remained at 1.23 Million.
Development Activity and Contribution Outlook
The chart shows that, amidst the notable surge in the development activity of over 150% this month, the token price kept on declining which reflects a negative outlook. This week, the development activity noted a steady move and is hovering around the 82 mark. Additionally, the development activity contributors count showed a notable decline and the value dragged to 3.
Furthermore, the Relative Strength Index (RSI) curve slipped to the midline and a negative crossover was noted on the charts. The total supply of the Optimism token is 4.29 Billion, whereas the value to market cap ratio is 0.482.
Summary
The Optimism crypto (OP) token price witnessed selling pressure and the price is heading on a declining note this week. Despite the bullish market sentiments, the token is delivering bearish waves and may continue to retrace in the next sessions.
Technical Levels
Support Levels: $3.20 and $3
Resistance Levels: $4 and $4.40
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
