Will Optimism (OP) Price Recover or Plunge More?

Despite the recent efforts, Optimism price has failed to gain ground and has been sliding toward the lower side. The OP price has been in a long-term

Despite recent efforts, Optimism (OP) price continues to decline, heading towards lower levels. Since April, OP price has witnessed a prolonged downturn, shedding almost 75% from its annual highs.

While the broader crypto market has experienced significant volatility, including both ups and downs, Optimism has predominantly encountered substantial downward movements in recent months.

The price has relentlessly decreased, forming multiple lower highs and lower lows. Investors appear to be losing confidence in the token due to its persistent underperformance, prompting them to seek safer and more promising investment options.

Let's delve into Optimism's price movement to determine whether it might be a bullish bet for upcoming sessions or continue to plunge downwards.

Optimism Crypto Derivatives Analysis

According to coinglass.com, Optimism has experienced a negative development in Open Interest (OI) contracts, showing a decrease of 5.60%. At the time of writing, the crypto had nearly $72.80 million in open contracts.

Furthermore, the 24-hour trading volume for Optimism (OP) surged by 10.7% to reach $160 million a day.

As per CoinMarketCap, community sentiment metrics indicated 80% bullish and 20% bearish sentiments towards Optimism (OP).

The volume-to-market cap ratio for Optimism (OP) stood at 10.51%, indicating mild volatility in the crypto.

Optimism token's market cap was nearly $1.49 billion, ranking it as the 48th largest crypto by market cap. Additionally, the current circulation supply comprised 27.6% of the total supply.

Having a total supply of nearly 4.294 million OP tokens, out of which 1.18 billion tokens were in circulation.

Will Optimism Price Recover or Plunge More?

The Optimism price has been rapidly declining over the last three months. It has lost nearly 30% a month and over 60% in the last three months.

The price has reached near multi-month lows, from where the bulls may attempt to make a comeback.

However, it seems a bit difficult for the bulls to recover because the price cannot find any support on the lower side. Optimism bulls need to establish a strong demand and halt the further downfall.

On the lower side, the $1 level might act as a strong demand, where the price is yet to be seen. The bears are in total control and may try to keep the trend control in their hands.

If the price breaks below the $1.16 level, which was the recent demand zone, then it may continue to plunge more towards the $1 level.

From a technical standpoint, the Optimism price hovered below all the key EMAs of 20, 50, and 200 days, suggesting a prevailing bearish trend.

Moreover, the MACD line and signal line were below the zero line, indicating a bearish continuation in the near term.

How Will the OP Price Perform in the Future?

Optimism (OP) has been in a long-term decline since April, losing nearly 75% from its annual highs. Over the past three months, OP has consistently moved downward, forming lower highs and lows.

Currently, near the multi-month lows, OP faced strong bearish control. Technical indicators show a bearish trend, with the price below key EMAs and MACD lines indicating further bearish continuation. Bulls need to establish strong demand to halt the decline.

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