• 17 July, 2024
Market News

Optimism Fails to Lift OP Token Price Despite Surge in Users: Demand Falls by 95%

Leading Layer 2 (L2) network Optimism’s native token OP has experienced a significant drop in price despite a surge in unique users. The cryptocurrency has posted a double-digit decline in the last month, falling below $2 after Silicon Valley Bank’s collapse on 10 March.

Optimism Network Growth and Daily addresses:Santiment

Data from Sanbase shows a 95% drop in new addresses involved in daily OP transactions since registering a daily high of 33,079 new addresses on 9 February. As new demand drops, it may be necessary to analyze market conditions and adjust strategies to navigate the changing landscape.

Optimism Price Analysis: OP price spikes high on the 4-hour timeframe

Optimism cryptocurrency was stuck in a bearish trendline, below $2.5, for many days now. The price was briefly trading above $2.60 in a 4-hour timeframe, but the bulls are stumbling to defend the support.

The MACD and RSI suggest that the bullish trend is losing its grip, with the RSI attempting to cross below 50. Despite a strong bounce from $2.3 on 8 March, OP will likely stay above the $2.5 level.

Optimism is trading at $2.66 after a period of sideways trading, with a 24-hour trading volume of $4.4 million. The coin has seen a double-digit decline in the last month, falling below $2 after Silicon Valley Bank’s collapse on 10 March.

The current market situation suggests that Optimism may be facing difficulties in overcoming and consolidating its gains. If the trend continues, OP/USD pair might complete the bearish crossover of the 50-day moving average on the daily chart.

Optimism price change in the last 4-hours shows the cryptocurrency formed a double-bottom pattern, indicating market players are slowly regaining confidence in the coin. However, if the bears take over the market, OP will plunge deeper into bearish territory and may eventually break below the $2 support level.

OP/USD 4-hour chart: TradingView

Looking ahead, the Fibonacci retracement levels suggest that the significant resistance lies at $2.8, and a break above this level could open up a bullish opportunity for the OP/USD pair. On the downside, if bulls fail to defend the support area around $2.45, then it is likely that Optimism will fall below the 50-day moving average.

Overall, Optimism’s price appears to be in a state of decline despite the surge in user base, but bulls may use their buying power to push prices higher if they can break through some of the key resistance levels.

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