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Despite the recent efforts, Optimism price has failed to gain ground and has been sliding toward the lower side. The OP price has been in a long-term decline since April, wiping nearly 75% of the annual highs.
The broader crypto market has been volatile, with major ups and downs. However, Optimism has only experienced major downward movements in recent months. The price kept on declining, forming multiple lower highs and lower lows.
The Investors seem to be losing confidence after the continuous underperformance of the token. They have been looking for safer and better investment options.
Let’s analyze Optimism price movement to find whether it may be a bullish bet for the upcoming sessions or continue to plunge downwards.
Optimism Crypto Derivatives Analysis
As per coinglass.com, Optimism has recorded a 5.60% negative development in the Open Interest contracts. When writing, It had nearly $72.80 Million Open contracts. Moreover, the 24-hour transaction volume surged by 10.7% to $160 Million a day.
The community sentiment metrics showcased 80% bullish and 20% bearish sentiments, as per CoinMarketCap. The volume-to-market cap ratio of 10.51% indicates mild volatility in the crypto.
Optimism token’s market cap was nearly $1.49 Billion, making it the 48th-ranked crypto by market cap. Also, the current circulation supply comprises 27.6% of the total supply.
It has a total supply of nearly 4.294 Million OP tokens, with 1.18 Billion tokens in circulation.
Will the Optimism Price Recover or Plunge More?
TheOptimism pricehas been on a free fall for the last three months. It has lost nearly 30% a month and over 60% in the last three months.
The price has reached near multi-month lows. From there, the bulls may try to make a comeback in the game.
However, It seems a bit difficult for the bulls to recover because the price cannot find any support on the lower side. Optimism bulls need to establish a strong demand and halt the further downfall.
The $1 may act as a strong demand on the lower side. However, the price is yet to be determined. The bears are in total control and may try to keep the trend control in their hands.
If the price breaks below the $1.16 level, the recent demand zone, then it may continue to plunge more towards the $1 level.
From a technical standpoint, the Optimism price hovered below all the key EMAs of 20, 50, and 200 days. It suggested a prevailing bearish trend. Moreover, the MACD line and signal line below the zero line indicated a bearish continuation in the near term.
How Will the OP Price Perform in the Future?
Optimism (OP) has been in a long-term decline since April, losing nearly 75% from its annual highs. Over the past three months, OP has consistently moved downward, forming lower highs and lows.
The 24-hour Open Interest contracts have decreased by 5.60%, while transaction volume increased by 10.7% to $160 million.
Currently near the multi-month lows, OP faced strong bearish control. Technical indicators show a bearish trend, with the price below key EMAs and MACD lines indicating further bearish continuation. Bulls need to establish strong demand to halt the decline.