OP Token Value Drops by 20%, Yet 80% of Holders Remain Profitable
20% Drop in OP Price in 7 Days: Whose Forecasts are Dominant?
The price of OP, the native token of the Optimism network, has dropped by 20% in the last seven days. This decline contrasts with the performance the token had earlier in the year. However, despite the recent drop, about 80% of OP holders remained profitable, according to data from IntoTheBlock.
Unshaken OP Holders Despite Price Drop
Many OP holders seem unimpressed by the recent downturn. But will this trend continue? Despite the recent drop, about 80% of OP holders remained profitable. This data means that a large portion of OP holders bought the token at a favorable price. At the time of writing, the price of OP was $2.85, a notable drop from the time it reached $4.25.
Possible Gains in Sight?
There have been some changes in the on-chain transaction volume in profit and loss. If this continues to be the case, the number of OP holders in profit could surpass the 83% mark. From the 4-hour chart, it is apparent that OP is gearing up to test the $3.00 resistance again. If it breaks this level, the token could target the next area of interest, which is around $3.25.
Relative Strength Index (RSI) and Aroon Indicator
At the time of writing, the Relative Strength Index (RSI) was at 35.55, suggesting that the token is just leaving its oversold state. Should the RSI reach 50.00, the price of OP could reach $3.25. Regarding the Aroon indicator, the Aroon Down (blue) was at 57.14%. On the other hand, the Aroon Up (orange) was flat. However, since the Aroon Down was trending downward, this means that the bearish pressure is easing and the bulls could capitalize on this to achieve an OP upswing.
Network Growth Decline, But That’s Not All
The network growth of Optimism has dropped to 1483. Network growth measures the number of new addresses interacting with a project. A decline suggests that the adoption of OP has fallen. However, it is worth noting that network growth jumped on January 23. This means that some participants may be closely watching the movements of OP. If network growth increases again, the demand for OP could also rise.
Realistic or Not, Here’s OP’s Market Cap in ETH Terms
At the time of writing, OP’s chances of reaching $3.00 may have increased. However, there is no guarantee that it will be able to hold in this region. If it does, that’s good news for holders. If not, participants who bought closer to $3 will have to deal with some losses.
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Sources: IntoTheBlock, Santiment, TradingView
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