Following a 22.34% decline over the past month, Optimism [OP] has started to see a recovery, displaying consistent gains of 7.92% weekly and 1.70% daily.
With a resurgence in buying interest, especially from major investors, and a significant increase in the average transaction value, OP seems to be gearing up for a substantial upward movement.
Influx of Major Investors
Recent market activity has shown a surge in large-scale transactions involving OP in the last 24 hours, aligning with a slight uptick in prices.
As of the latest update, large investors acquired 277.17 million OP, worth $501.62 million, indicating a notable portion of the total supply being held by them.
This surge in buying interest from major players suggests a positive momentum for OP’s price, as it continues to show slight gains.
Moreover, there has been a significant spike in the average transaction size, reminiscent of levels observed back on November 4th, with the average size reaching $20,697.00 over the last 24 hours.
The simultaneous increase in the average transaction size and the volume of large transactions indicates substantial accumulation of the asset, bolstering the bullish sentiment in the market.
Targeting $2.60 in Trades
The optimistic outlook remains visible on the price chart currently, with OP trading within an accumulation phase and forming a golden cross pattern.
In the 4-hour chart, OP is within a symmetrical pattern characterized by converging support and resistance lines—a bullish formation that appears intermittently.
In the event of a breakout, OP could potentially surge by 36.98%, reaching $2.616, before a re-evaluation or further upward movement.
Simultaneously, the formation of the golden cross pattern indicates a forthcoming high-momentum price increase as trading activity starts to intensify.
The golden cross happens when the blue MACD line crosses above the orange signal line. Presently, the MACD line is at -0.001, while the signal line is at -0.004.
A potential significant price surge may be triggered if the MACD line enters positive territory.
Increased Interest in Derivative Market
Currently, there is growing buyer interest in the derivative market, as evidenced by OP’s Funding Rate on Coinglass.
The Funding Rate monitors the mechanism used to balance price differences between the spot and futures markets. A positive Funding Rate indicates a bullish market, while a negative rate signals bearish sentiment.
At the moment, the Funding Rate stands at 0.00132%, indicating a prevalence of long positions. This dominance helps stabilize prices and hints at a potential further increase in OP’s price.