The Optimism (OP) token price failed to overtake the 200-day EMA mark and faced rejection, which led to a drop of over 12% this week.
Meanwhile, the token witnessed a trend reversal from the bottom and might continue to stretch the up move ahead.
A break and close above the $3 mark would confirm the trend reversal and can lead to a sharp surge. Until the token trades below the 200-day EMA mark, sellers are in control and will reveal their dominance.
At press time, the Optimism (OP) token price traded at $2.55 with an intraday surge of 0.55%, reflecting neutrality on the charts. It has a monthly return ratio of 5.23 and 58.28% yearly.
The pair of OP/BTC is at 0.0000367 BTC, and the market cap is $547.62 Million. Analysts are neutral and suggest that the OP price may hover around the $3 mark and will replicate the volatile trend ahead.
Optimism In Dilemma: Could It Cross the $3 Mark?
The daily charts of the Optimism token highlight the dilemma among the investors. Recently, the token has rebounded from the lows and recovered over 25% last month.
Meanwhile, buyers have yet to sustain above the 200-day EMA, which is a primary concern. If the bulls succeed in crossing the $3 mark, sellers will get trapped, and a sharp up move can be seen.
Source: Santiment
A recent tweet on the X platform articulated that whale activity led to the selloff and resulted in a rejection from the 200-day EMA mark.
However, the buyers have still tried to accumulate and are eyeing to cross the $3 mark.
Optimism (OP) Price Declines Due to Whale Sell-Off
— Ripple Van Winkle | Crypto Researcher (@XRPNews_) May 23, 2024
https://t.co/gRZM7kTLg1
Source: Twitter
Ranked at 139, the Optimism token has a total supply value of 4.29 billion, and the trading volume declined over 63.40% to $268.19 Million in the last 24 hrs.
The Momentum Indicator (RSI) curve stays close to the midline and replicates a negative crossover on the charts.
Sudden Drop In Volatility and Sentiment Data
Following the price rejection near the $3 mark, the price volatility signifies a sudden spike and then dropped, hinting the investor speculation.
Source: Santiment
TVL (Total Value Locked) Witnessed a Drop
Source: Artemis
This week, followed by the price retracement, the TVL of the OP token significantly dropped and reached 863 Million, revealing the negative sentiment.
Futures Data Hints Short Buildup
This week, the fresh short additions in the future data were noted, an early indication of a possible selloff.
Source: coinglass
The OI data surged over 6.27% to $204.11 Million in the last 24 hrs, revealing the short buildup activity.
Conclusion
The Optimism (OP) token price still trades below the 200-day EMA mark and is witnessing a drop in investor interest. While the sentiments have remained positive, which might lead to a potential bull run ahead.
