Optimism (OP) Price Action: Bulls Return Amid Improved Market Sentiment
The Optimism (OP) price has shown signs of recovery, pushing higher as market sentiment improves. Over the last 24 hours, OP has managed to reclaim positive territory above the 20-day Exponential Moving Average (EMA). The recent sessions have seen the return of OP bulls, offering relief to short-term investors and derivatives traders alike. However, the token’s performance has been mixed this month, largely due to high volatility.
Despite this mixed performance, on-chain data reveals that more traders are turning profitable compared to previous months. This suggests a resilient trading behavior among OP holders.
Optimism (OP) Price Turning Profitable
The daily ratio of Optimism token’s transaction volume in profit to loss, calculated using a 30-day moving average, indicates a positive trend. Over the past month, more transactions have been profitable than those ending in a loss. As of now, the average 30-day ratio of on-chain transaction volume stands at 0.89.
- Intraday ratio of on-chain transaction volume profit to loss: 1.35
- For every loss-making transaction, 1.35 transactions result in a profit
Additionally, derivatives traders are placing bets on the long side, potentially driving OP’s price higher. Analysts have noted a 13% increase in open interest contracts, which rose from $63 million to $71 million in just one day. The 24-hour transaction volume has also reached $154.09 million, with a volume-to-market cap ratio of 9.93%, suggesting mild volatility in the token. According to data from CoinMarketCap, community sentiment is 74% bullish.
Can Optimism (OP) Be a Bullish Bet for September?
From a technical standpoint, the Optimism price is trading above the 20-day EMA, indicating a bullish short-term outlook. However, the price is still under long-term bearish pressure, trading 44% below the 200-day EMA.
When applying the Fibonacci retracement tool from the recent swing high of $1.97 to the recent swing low of $1.05, the OP price is currently hovering near the golden zone. If OP can surpass this golden zone at the $1.60 level, it could signal a continuation of the upward trend towards the 200-day EMA and the psychological $2 level.
Conversely, if the OP price encounters bearish pressure and falls below the $1.25 level, it may confirm a bearish trend continuation.
The MACD line and signal line have crossed above the zero line, indicating bullish momentum in the short term. Furthermore, a positive divergence between these lines reinforces this bullish sentiment.
How Might the OP Price Perform in the Near Future?
The Optimism token is showing bullish signs, reclaiming positive territory above the 20-day EMA. The daily ratios of transaction volume in profit to loss suggest more profitable transactions in recent sessions. Additionally, derivatives traders are betting long, with open interest contracts increasing by 13%.
Technically, OP is trading above the 20-day EMA but remains under long-term bearish pressure below the 200-day EMA. Should the price surpass the $1.60 level, it may continue rising towards the 200-day EMA and the $2 mark. On the other hand, a drop below $1.25 could validate a bearish trend.
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