In a notable development, the Optimism price has experienced substantial upward momentum in recent days, emerging as one of the leading gainers in today’s market. This surge has propelled Optimism’s native token, OP, into contention for a spot among the top 30 cryptocurrencies by market capitalization.
However, amidst the positive trajectory, there are signs of a potential shift to bearish sentiment as a sell signal emerges on the price chart. In a recent post on the X platform, Crypto analyst Ali Martinez raised the alarm for the OP token, suggesting that investors may want to consider capitalizing on their profits given the potential downturn.
Martinez’s analysis focuses on the TD (Tom DeMark) sequential indicator, which currently indicates a sell signal on Optimism’s 12-hour price chart. Notably, a previous buy signal from the same indicator preceded a significant surge in OP price in December, heightening concerns of an impending bearish reversal.
Encouraging investors to act promptly, Martinez emphasizes the likelihood of a decline in OP price, potentially mirroring the scale of the initial bullish upswing. This cautionary outlook comes amid an otherwise positive OP-run, casting uncertainty on the altcoin’s bullish trajectory.
Optimism Surges: Impressive 34% Growth In 24 Hours, 55% Spike Over The Past Week
As of the latest update, the Optimism price stands at $3.37, reflecting a remarkable 34% increase in the past 24 hours. Over the past week, data from CoinGecko reveals a surge of over 55% in the cryptocurrency’s value.
Despite the current caution, OP is poised to conclude the year as one of the 30 largest cryptocurrencies, with its market cap recently surpassing $3 billion. This rapid ascent underscores the notable growth of the token within a short timeframe.
Recent data from IntoTheBlock indicates that the Optimism network now boasts over 5.9 million addresses with a balance, marking a nearly 400% increase from 1.2 million in January 2023. Such substantial growth suggests heightened confidence, adoption, and usage of the OP token network.
While the current bearish projection raises concerns, the overall positive trend in the Optimism network’s metrics suggests that the Optimism price may not experience a prolonged downturn if the projection materializes.