The Optimism (OP) token price recently shifted below the $2 mark, leading to an aggressive down move in the past week. Amidst the broader market selloff, most altcoins have faced a turnaround and bled significantly.
The OP token price dragged below its key moving averages, revealing lower low swings for the past few weeks. Traded in a falling channel, the token could not exceed the 20-day EMA amidst multiple attempts and conveyed the underperformance.
Until the token retains the $2 mark, further decline will be seen, and the $1 mark can also be retested in the next session. The market tumbled badly in the last few hours, and sellers have shown their upper hand.
At press time, the Optimism traded at $1.31 with an intraday drop of 14.36%, reflecting selling pressure on the chart. It has a monthly return ratio of -48.30% and 3.20% yearly, reflecting a downtrend.
The pair of OP/BTC was at 0.0000239 BTC, and the market cap was $282.21 Million at press time. Analysts looked bearish and suggested that the OP price may continue to lose gains and would retest the $1 mark soon.
Is Optimism (OP) Gearing up for Further Declines?
The daily charts of the Optimism token showed a follow-on selloff and a three-black crow pattern. It revealed that sellers had gained traction and would likely stretch down the move ahead.
The token has reached the yearly low mark of $1.30 and has been making a bearish move. As market leaders, Bitcoin and Ethereum started bleeding gains, it influenced most altcoins and caused a panic selloff in the market.
OP Price Chart | Source: Santiment
The token has breached its crucial pivot of $1.50 and would likely continue the bearish move toward the $1 mark ahead. Meanwhile, if any bounce happens, the prompt hurdle of $1.80 is the level to be watched out for.
The Relative Strength Index (RSI) curve dragged to the oversold region, where a panic selloff was witnessed in the past few trading sessions.
Per the Fib levels, the token has breached its 23.6% zone and guided a heavy selloff while it was on the verge of the lower Bollinger Band support zone.
A Sharp Surge in Price Volatility Data
When writing, the Weighted Sentiment Data remained flat below the midline region, noted around the -0.117 mark, and conveyed a negative outlook.
Weighted Sentiment Data | Source; Santiment
Meanwhile, the price volatility data reflected a massive surge, spiking over 210% to the 0.045 mark, and witnessed a sharp speculative move.
Lieutenant Ponzi tweeted that the OP token has made a butterfly formation and the $0.886 level is the make-or-break zone ahead.
$OP macro bat and .886 pic.twitter.com/iIpR5nOURO
— Lieutenant Ponzi (@LieutenantPonzi) July 5, 2024
A Tweet by Lieutenant Ponzi | Source: X
Consistent Decline in Total Value Locked (TVL)
Its Total Value Locked (TVL) data witnessed a consecutive decline and dragged to $666 Million, revealing the negative outlook.
TVL Data | Source; Artemis
Futures OI Data Reflects Panic Among Investors
Amidst the severe price decline, the investors were in a dilemma and sharply covered their long positions.
The open interest data noted a drop of over 21.30% to $97.84 Million, conveying a long unwinding move in the past 24 hours.
OI Data Source: Coinglass
The immediate support levels for the OP token were $1.80 and $1.30, whereas the key upside hurdles were around $2.40, followed by $3 at press time.
What’s Next For Optimism (OP) Amidst Severe Fall?
The Optimism token price dragged below its key moving averages and breached its crucial support zone of $1.50, directing a sharp selloff. Meanwhile, the volume-based selloff conveyed the sellers’ strength, and the token might extend the down move ahead.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
