- Optimism witnessed an increase in both the number of transactions and their volume.
- However, OP still struggled to make a comeback on price and metrics.
The end of the second quarter of 2023 could not be considered optimistic for Optimism [OP] block chain. This was because where most cryptocurrencies, especially altcoins, saw progress, OP struggled.
According to data from CoinMarketCap, OP traded hands down 7% over the past 24 hours and nearly 15% down over the past seven days. In addition, as of June 28 a tweet from blockchain intelligence platform IntoTheBlock stated that OP witnessed a remarkable increase in the number of transactions.
Moreover, the daily volume also witnessed an uptick, going from 10,000 to almost 40,000. Could this mean OP is in for some recovery? Let’s find out…
How much are 1,10,100 VPs worth today?
Far from home…
Looking at the performance stats, it could be seen that OPs still had a long way to go on the recovery path. This was because at the time of writing, OP’s weighted sentiment stood at -1,025. This was on the downside given the performance since late February.
Moreover, although development activity has shown an increase in recent days, there was a noticeable drop from June 28. This could be a sign that developers weren’t doing much in terms of development. Also alarming, OP’s MVRV ratio dipped after peaking on June 17.
Source: Sentiment
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In addition to the aforementioned data, a look at OP’s daily chart also gave a clear picture of what to expect from the altcoin. OP switched hands at $1,199 at the time of writing. The token traded 8% lower than the day’s opening price. In addition, the Relative Strength Index (RSI), although at 42.16, was seen in a falling position.
Realistic or not, here is OP’s market cap in terms of BTC
This indicated significant selling pressure in the market. However, at the time of writing, the Moving Average Convergence Divergence (MACD) still showed some hope. This was because the MACD line (blue) was still moving above the signal line (red). But looking at the closeness between the two lines, a bearish crossover would be imminent if traders continued to sell the token.
Contrary to the RSI, OP’s Money Flow Index (MFI) stood at 67.43 and was moving sideways at the time of writing.
Source: TradingView
Given OP’s stats and price action, it could be said that traders hoping for a rally may be disappointed. However, recovery would only be possible if the selling pressure eases and more and more traders start to look for the altcoin.