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Optimism (OP), due to the state of the Layer-2 sector, has encountered some difficulties. What are the expectations for this popular cryptocurrency unit after the recent volatile days in the cryptocurrency markets?
Current Technical Indicators of OP
Optimism’s weekly transaction volume saw a significant increase before falling back towards the average recently. However, the total value locked continued to grow. An examination of OP’s price charts can offer further assistance regarding its price. Optimism has traded within a range from $0.895 to $1.87 since May.
Although the three-day chart’s market structure remains in an uptrend and the RSI shows a strong upward momentum, a move above $1.9 may not occur. The On-Balance Volume (OBV) has not reached new highs since August, indicating that the buying volume is not dominant. However, the Chaikin Money Flow (CMF) rose above +0.08, signaling intense capital inflow into the OP market. A sell order block at $1.8 continues to resist the efforts of the bulls.
Steady Stance from OP Holders
Before another uptrend above $2, a daily trading hour closing above $1.88 may be necessary. Despite OP being at a major time frame resistance, its idle circulation has not seen notable increases lately. The average age of the cryptocurrency continues to rise, indicating ongoing accumulation. Social volume also showed an uptrend last month, suggesting that OP holders are not yet willing to sell.
An increase in idle circulation could be an early sign of this. Additionally, the MVRV ratio was high and close to the highest levels at the end of July. A sudden increase in selling pressure has not been observed yet. In conclusion, despite the challenges in the Layer-2 sector, Optimism has experienced an increase in weekly transaction volume, while its performance on the price charts maintains uncertainty. The charts may show difficulty in determining whether a move above $1.9 will occur.
- Optimism faces Layer-2 sector challenges.
- OP price performance shows uncertainty.
- Weekly transaction volume increases despite adversity.
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