Optimism (OP) Price Dips 4.2% After Whale Dumps $5M in Tokens

In the last 24 hours, the Optimism (OP) market has been in a bearish phase, triggered by a “whale” selling 2.095 million OP tokens for 5 million USDT on the Binance trading platform. This large-scale sale resulted in a 4.2% drop in the price of OP.

The transaction involved selling a substantial amount of OP tokens at a loss for the seller. The whale initially acquired these tokens by trading 2,000 ETH, valued at $5.99 million at the time, on May 3rd. The recent sale, therefore, represents a financial setback of approximately $990,000, or a 16.5% decrease from the initial investment.

During this period, Optimism’s price opened near $2.46, briefly rising before experiencing a sharp decline to approximately $2.40. The price then recovered, returning to the $2.455 level.

At press time, OP was trading at $2.45, a 0.24% decline over the past day. Optimism’s market capitalization currently stands at $2.67 billion, reflecting a slight decrease of 0.72% over the previous day. However, trading volume has surged by 671.7% to about $233.7 million.

OP/USD 24-hour price chart (source: CoinMarketCap)

OP/USD Technical Analysis

On the OPUSD, the chart displays a notable rising wedge pattern earlier in the sequence, typically considered bearish in technical analysis. This trend suggests that despite the initial upward trend within the wedge, a reversal to the downside was likely, which occurred as the price subsequently fell.

After the breakdown from the rising wedge, the price entered a consolidation phase marked by a rectangle pattern. This pattern indicates a period of indecision during which the price oscillates between relatively stable high and low levels. If bullish momentum breaks above the upper band of this rectangle, the next resistance levels to watch are $3 and $3.8, respectively.

OP/USD 24-hour price chart (source: TradingView)

However, the Moving Average Convergence Divergence (MACD) line is below the signal line and in the negative territory, with a -0.051 rating indicating bearish momentum. This suggests that the bearish trend could continue if the MACD diverges downwards. Moreover, the bearish momentum may be prolonged with the histogram remaining in the negative region.

On the other hand, despite the Relative Strength Index (RSI) moving below its signal line with a rating of 44.73, it is moving upwards. This trend suggests the bearish momentum is easing, and hence, a potential bullish crossover may loom if the RSI moves above the 50 regions.