Optimism Buy Signal After 9% Price Dip

Optimism Price Drop Sparks Strong Buy Signal

The recent decline in Optimism (OP) prices has triggered a significant buy signal, with long-term holders showing record low activity.

Over the past 24 hours, Optimism’s price has plunged by 9.6%, currently trading at $1.33. This marks a steady decline from its all-time high of $4.85 on March 6. Despite the drop, OP’s market cap remains at $1.57 billion, making it the 48th-largest cryptocurrency by market capitalization. Meanwhile, daily trading volume has surged by 23%, reaching $145 million.

Key Indicators and Market Data

According to Santiment data, the Relative Strength Index (RSI) for OP is at 41, suggesting that Optimism is slightly oversold at its current price. Additional insights from Santiment reveal the following:

• Long-term OP holders have remained inactive despite the recent price drop. The one-year dormant circulation of Optimism tokens has dropped significantly from 132,510 to 14,701 tokens within the last 24 hours, marking a one-month low.
• The daily active addresses divergence for OP stands at 114%, indicating a strong buy signal. The increased trading volume suggests heightened price volatility.
• Optimism’s total funding rate has risen from negative 0.003% to 0.002% in the past day, reflecting bullish sentiment among traders regarding a potential OP price surge.

Macroeconomic Considerations

Despite these bullish indicators, broader macroeconomic factors could impact financial markets, including cryptocurrencies. Analysts at Coinbase Research have warned that macro pressure might put the crypto ecosystem under tension in the coming weeks, starting from August 9.