- Despite the recent decline, 83% of operating profit owners recorded a surplus.
- If the upward trend continues, operating profit could return to $3.25..
AMBCrypto revealed that the price of OP, the native token of the Optimism network, has fallen 20% over the past seven days. This decline was contrary to the token’s performance earlier this year.
For example, we reported how OP hit an all-time high (ATH) due to price increases.
But despite the recent decline, about 80% of operating profit holders are still making a profit, data from IntoTheBlock shows.
Despite the price falling almost 20% in the last 7 days, more than 80% $OP The holder keeps the profits.
🔗https://t.co/lmTUjhZFx4 pic.twitter.com/3hlFNbG95b— IntoTheBlock (@intotheblock) January 24, 2024
This data suggests that a significant number of OP holders purchased their tokens at low prices. At the time of this writing, the price of OP is $2.85, a notable decline from the period when it was $4.25.
Do you gain more along the way?
This has resulted in some changes to on-chain trading volume gains and losses. According to AMBCrypto’s Santiment analysis, the P&L sizes on January 23 were roughly similar.
However, as of press time, the gains in on-chain trading volume are outweighing the losses. If this continues, the number of profitable OP holders will exceed the 83% market.
Source: Emotion
On the 4-hour chart, OP has made a move to retest the $3 resistance. Breaking this level will allow the token to target the next point of interest, which is around $3.25.
The buying momentum needs to be very strong for the OP to achieve this. However, at the time of writing, the Relative Strength Index (RSI) stands at 35.55, indicating that the token is just coming out of its oversold condition.
If RSI reaches 50.00, OP price may reach $3.25.
Regarding the Arun indicator, Arun Down (blue) recorded 57.14%. On the other hand, Arun Up (orange) was flat.
However, since Aroon Down has been trending downward, this means bearish pressure is waning, and bulls can take advantage of this to push for higher operating margins.
Source: TradingView
Less traction, but that’s not all
Moreover, Optimism’s network growth decreased to 1483. Network growth measures the number of new addresses interacting with your project.
When the indicator increases, it means there is a surge in traction and new addresses are transacting.
However, this decline means OP adoption has declined. However, it is worth noting that network growth spiked on January 23rd.
This means that there may be participants closely observing the OP’s movements. If the indicator increases again, OP demand may also increase.
Source: Santiment
Realistic or not, the market cap of OP in ETH terms is:
At press time, OP may have reached $3.00. However, even if you do that, there is no guarantee that the region can be maintained.
If so, that’s good news for holders. Otherwise, participants who purchase close to $3 will have to write off some of their holdings as a loss.