- OP will unlock tokens worth over $88 million on February 29th.
- Most market indicators and indicators were bearish on operating profit.
Over the past 7 days, Optimism (OP) The price suffered a major setback, losing more than 6% of its value. However, with the price strengthening, there was a chance that the token could rebound.
Optimistic Investors Are Worried
Last week was a rather disastrous one for investors, with the token’s value falling by more than 6.9%. The dark days are far from over as the token’s daily chart continues to remain red.
According to CoinMarketCap, at press time, operating profit had fallen more than 1.2% in the past 24 hours alone. Optimism is expecting the next token unlock on February 29th, so things could get even worse.
Unlocking tokens often leads to price drops because it increases circulating supply. First of all, when supply increases and demand decreases, asset values fall.
Source: X
The aforementioned data set looked bearish, but a new analysis shows otherwise. Depending on the TwitterThe price of OP was moving in an ascending triangle pattern, which usually leads to a bullish rally.
So, to see if this was possible, AMBCrypto took a closer look at the OP’s state. If the token tests that pattern, investors could witness an uptrend.
However, for now, it seems unlikely that the token will begin an upward rally. In fact, sentiment surrounding the token remains bearish, which is evident from the decline in weighted sentiment over the past week.
Another bearish signal was Optimism’s development activity, which has fallen over the past seven days.
Source: Santiment
What to expect?
I have a better understanding of which direction OP could go. AMBCrypto checked the daily charts. Our analysis shows that the Relative Strength Index (RSI) is trending lower.
Optimism’s Chaikin Money Flow (CMF) also continued a similar downward trend, suggesting that there is a high possibility of a price decline. MACD also showed potential for a bearish crossover.
read Optimism (OP) Price Prediction 2024-25
If you believe Bollinger Bands, the price of OP has entered a less volatile zone, further reducing the likelihood of a price breakout heading north.
Considering all the aforementioned indicators and the upcoming token unlock, it seemed highly unlikely that OP would begin a bullish rally anytime soon.
However, the cryptocurrency market is notorious for its unpredictable nature, so which direction OP will move in the future is a question that only time can answer.
Source: TradingView