- Though OP’s price action was bullish, its 24-hour trading volume registered a decline.
- Market indicators kept supporting the bulls, suggesting a further price uptick.
Optimism [OP] recently turned bullish as its price went up in the last 24 hours. However, the good days might not last long, as OP witnessed an increase in its circulating supply. Token Unlocks’ latest tweet revealed that OPs worth millions of dollars were released in the market on 30 July 2023. As the circulating supply increases, there are high chances of OP’s bullish rally coming to an end.
How much are 1,10,100 OPs worth today
The aftermath of the token unlock
After a week-long price decline, from nowhere, the token’s price gained bullish momentum. According to CoinMarketCap, OP was up by more than 4% in the last 24 hours. At the time of writing, it was trading at $1.56 with a market capitalization of over $1 billion.
However, the price uptrend was accompanied by a double-digit decline in trading volume, which is usually a bearish signal.
Things can turn worse in the short term as 24 million OP, which are worth over $36 million, were injected into the market. According to Token Unlocks, the newly unlocked tokens accounted for 3.56% of Optimism’s supply. As of now, 16% of Optimism’s total supply has been released into the market.
Notable Unlocks Alert
Tomorrow, 24M of $OP will be unlocked (worth $36.5 million)
Consists of: Core Contributors ( Team ) & Investors
There are 45 more unlocks of this size to come
Let’s see what the outcome of these unlocks will be
Link : https://t.co/2Rhyr8geUg pic.twitter.com/9dSOaUP40x
— Token Unlocks (@Token_Unlocks) July 29, 2023
Simply put, when supply increases, demand declines, which causes a drop in the price of an asset. Therefore, the chances of a halt to the OP’s bull rally seemed likely. Additionally, a look at the token’s on-chain metrics also gave a bearish notion, despite the recent price gains.
For instance, its MVRV Ratio declined sharply last week. Negative sentiment around OP was dominant in the market, as evident from its weighted sentiment. The whale transaction count dropped, reflecting less willingness of whales to trade the token.
On top of that, Optimism’s open interest dropped. A decline in the metric usually means a trend reversal, increasing the chances of OP’s uptrend ending soon.
Source: Santiment
Realistic or not, here’s OP market cap in BTC‘s terms
Not everything is against Optimism
Surprisingly, a look at Optimism’s daily chart revealed that the bulls were controlling the market. The Exponential Moving Average (EMA) Ribbon displayed a bullish crossover as the 20-day EMA flipped the 55-day EMA.
OP’s Relative Strength Index (RSI) was moving up. Its Money Flow Index (MFI) also followed the same trend, giving hope for a continued price uptick. Nonetheless, the Chaikin Money Flow (CMF) remained bearish as it was below the neutral mark of 0.
Source: TradingView