Optimism price has been witnessing significant momentum over the past few days, becoming one of the top gainers in the market today. Thanks to this recent price growth, Optimism has seen its native token OP lay a serious claim to a place within the top 30 cryptocurrencies by market capitalization.
However, it seems that the Optimism price movement may soon be turning bearish following the appearance of a sell signal on the price chart.
Indicator That Preceded 80% Rally Turns Bearish, Analyst Says
In a recent post on the X platform, crypto analyst Ali Martinez sounded the sell alarm for the OP token. According to the popular crypto pundit, the Optimism price might be in the best range for investors to cash in on their profits.
The reasoning behind this forecast revolves around the TD (Tom DeMark) sequential indicator. Based on Martinez’s analysis, the indicator is currently flashing a sell signal on Optimism’s 12-hour price chart.
The crypto analyst highlighted that a buy signal from the TD sequential indicator preceded a substantial surge in Optimism price earlier in December. And this adds even more weight to the possibility of a bearish turnaround following a sell alarm from the indicator.
Martinez advised investors to think about taking profits right away, given that the OP price may decline and mirror the size of the initial bullish upswing. This projection comes during an exhilarating positive run for OP, putting the altcoin’s bullish trajectory in jeopardy.
Optimism Price And Network Growth
As of this writing, the Optimism price stands at $3.37, reflecting an almost 34% price increase in the past 24 hours. According to data from CoinGecko, the value of the cryptocurrency has soared by more than 55% in the past week.
The OP coin looks set to end the year as one of the 30 largest cryptocurrencies in the sector, with its market cap recently surpassing $3 billion. This positive performance of the token – in such a short time span – only underscores the increased rate of network growth.
According to recent data from IntoTheBlock, the Optimism network boasts more than 5.9 million addresses with a balance. This represents a nearly 400% surge from 1.2 million in January 2023.
What a year for @Optimism! The network currently counts over 5.9 million addresses with a balance, up 391% from 1.2 million in January!🔗https://t.co/b6bBM1Qd6z pic.twitter.com/58gPngqEk3
— IntoTheBlock (@intotheblock) December 21, 2023
Growth of this caliber and magnitude suggests increased confidence, adoption, and usage of the Optimism network. And if this positive trend is anything to go by, there is a chance the Optimism price won’t be down for long – if the current bearish projection does come true.
Optimism price experiences sharp pullback at $3.5 on the daily timeframe | Source: OPUSDT charton TradingView
Featured image from iStock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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