Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.
- Optimism has performed well on both price charts and DEX indicators.
- Retesting long-term resistance may result in OP being rejected.
Optimism (OP) faces challenges due to the situation in the L2 sector. A recent AMBCrypto report detailed what this means and how DEXs have been able to succeed despite the competitive environment.
Optimism’s weekly trading volume also recently saw a big spike before falling back to its average level. However, the total value locked continued to increase. You can get more information by looking at OP’s performance on the price chart.
A retest of the range high has yet to be won by the bulls.
Source: TradingView OP/USDT
Bullish has traded within an extended range (yellow) since May, from $0.895 to $1.87. The market structure on the 3-day chart remains bullish and RSI has shown strong upward momentum, but a move above $1.9 may not materialize.
On Balance Volume (OBV) has not reached a new high since August. This shows that purchasing volume is not dominant.
However, Chaikin Money Flow (CMF) rose above +0.08, indicating significant capital inflow into the operating profit market.
The bearish order block at $1.8 continued to resist the bulls’ efforts. To anticipate another upward trend above $2, we need a daily trading session that closes above $1.88.
Social volume recovers after last month’s decline, selling pressure is not yet high
Source: Santiment
OP has a much higher period resistance, but there hasn’t been a noticeable spike in dormant circulation in recent days.
The average monetary age also continues to increase, showing that accumulation is progressing. Social volume also showed an increase compared to last month.
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This means that the OP holder is not yet considering selling. A surge in dormant circulation may be an early sign of that.
MVRV rates were high and close to their peak in late July. Overall, we have yet to see a sudden surge in selling pressure.