- 83% of OP holders were in profit despite its recent decline.
- OP could head back to $3.25 if bulls sustained the momentum.
The price of OP, the native token of the Optimism network, decreased by 20% in the last seven days, AMBCrypto found. This decline was contrary to the performance the token had earlier in the year.
For instance, we reported how OP tapped a new All-Time High (ATH) as a result of the price increase.
But despite the recent slide, about 80% of OP holders remained in profit, data from IntoTheBlock showed.
Despite suffering a price decrease of nearly 20% in the last 7 days, over 80% of $OP holders remain in profit.
🔗https://t.co/lmTUjhZFx4 pic.twitter.com/3hlFNbG95b— IntoTheBlock (@intotheblock) January 24, 2024
This data meant that a chunk of OP’s holders had purchased the token at a cheap price. As of this writing, OP’s price was $2.85, a notable decline from the period it hit $4.25.
More gains on the way?
As a result, there have been some changes in the on-chain transaction volume in profit and loss. According to AMBCrypto’s analysis of Santiment, the volume in profit and loss was almost at par on the 23rd of January.
But at press time, the on-chain transaction volume in profit has been outpacing those in loss. Should this continue to be the case, then the number of OP holders in profit would cross the 83% market.
Source: Sentiment
From the 4-hour chart, OP was making moves to retest the $3.00 resistance. If it breaks this level, then the token could target the next point of interest, which was around $3.25.
For OP to achieve this, buying momentum has to be very present. But as of this writing, the Relative Strength Index (RSI) was 35.55, indicating that the token was just leaving its oversold state.
Should the RSI tap 50.00, OP’s price could reach $3.25.
Regarding the Aroon indicator, the Aroon Down (blue) was 57.14%. On the other hand, the Aroon Up (orange) was flat.
But since the Aroon Down trended downwards, it means bearish pressure was becoming weak, and bulls can capitalize on that while pushing for an OP upside.
Source: TradingView
Traction falls, but that’s not all
Furthermore, Optimism’s Network Growth had declined to 1483. The Network Growth measures the number of new addresses interacting with a project.
When the metric increases, it implies a surge in traction and new addresses are making transactions.
However, this decrease suggests that adoption of OP has fallen. But it is noteworthy to mention that the Network Growth jumped on the 23rd of January.
This means that there could be some participants closely watching OP’s movement. If the metric gets back to increasing, demand for OP might also climb.
Source: Santiment
Realistic or not, here’s OP’s market cap in ETH’s terms
At press time, OP’s chances of reaching $3.00 might have increased. However, if it does, there is no guarantee that it would be able to hold on to the region.
If it does, it’s good news for the holders. If it does not, participants who bought closer to $3 would have to deal with some holding at a loss.
