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- Optimism price has declined by 16.74% during the weekly trading session.
- Moving averages indicate a strong negative signal in the current phase.
- The trading volume has risen over 45% in the last 24 hours.
Optimism (OP) is a layer-2 blockchain on the Ethereum network, which benefits from the security of the Ethereum mainnet. It helps scale the Ethereum ecosystem using optimistic rollups, which means transactions recorded on optimism but secured on Ethereum. It is one of the largest scaling solutions, having over $500 Million in TVL.
Optimism Rolled Over 130% In The Last Six Months
The OP token price has experienced a potential bullish reversal from the $1.15 support in October 2023. The price gave 3.72% returns in October and 19.78% in November 2023.
However, the price made a noticeable change in December 2023. The price reflected a surge of 121.66% during that month. Since then, the Optimism price has been struggling to sustain above the $4.03 resistance.
The maximum supply of OP tokens is capped at 4.29 billion, and the total diluted valuation is estimated at $13.61 Billion. Optimism has released 23.43% of tokens from the maximum supply, which hardly stands at 1.00 billion OPs.
Price to Volume and Social Dominance Analysis
The social buzz of Optimism has been constantly fading since December 2023 from 3.67% to 1.76%. Conversely, the volume has maintained its integrity above $300 Million, and the price has shown regular growth since December 2023.
The 24-hour trading volume has reached $291 Million, ranking 58th according to CoinMarketCap(dot)com. The cryptocurrency is reflecting higher liquidity by maintaining the volume-to-market capitalization ratio (VMR) at $8.96%.
Technical Analysis of the Optimism (OP) Price
The current OP price slipped between the key exponential moving averages, reflecting uncertainty in the current trading session. The 200-day EMA can act as a dynamic support for the OP token price.
Optimism crypto price has given a breakout of the $4.32 resistance on March 5, 2024. The price reached $4.86 and fell to the $3.19 bullish point of interest (POI). An upsurge of over 25% can be seen in the price from that POI. However, the price failed to break above the $4.32 supply zone, which resulted in a negative surge of almost 21%.
OP token price fell below the $3.19 bullish POI and is moving toward the $2.62 support. If the price slips below that support, it may face a negative rally to the $1.82 support. Or, if the price closes above the $4.32 supply zone, it will continue the bullish trend.
The relative strength index (RSI) is reflecting an internal bearish divergence in the price momentum. It indicates increasing selling pressure in the current trading phase. At present, the RSI is moving at 35.62 near the oversold region.
Summary
Optimism price has been showing strong bullish sentiments since November 2023. The token price has already made a new all-time high at $4.85. The current price is facing selling from the all time high level. If the OP token price slips below the $2.62 support, it may face a negative rally to the $1.82 support. Or, if the price closes above the $4.32 supply zone, it will continue the bullish trend.
Technical levels
- Resistance Levels: $4.03 and $4.85
- Support Levels: $2.62 and $1.82
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.
