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What to expect as Optimism unlocks tokens worth millions

2min Read

Optimism unlocked 24 million OP tokens on 30 July 2023, which accounted for 3.56% of its total supply.

Optimism’s bull rally might end soon as.. 

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  • Though OP’s price action was bullish, its 24-hour trading volume registered a decline. 
  • Market indicators kept supporting the bulls, suggesting a further price uptick.

Optimism [OP] recently turned bullish as its price went up in the last 24 hours. However, the good days might not last long, as OP witnessed an increase in its circulating supply. Token Unlocks’ latest tweet revealed that OPs worth millions of dollars were released in the market on 30 July 2023. As the circulating supply increases, there are high chances of OP’s bullish rally coming to an end. 


How much are 1,10,100 OPs worth today         


The aftermath of the token unlock

After a week-long price decline, from nowhere, the token’s price gained bullish momentum. According to CoinMarketCap, OP was up by more than 4% in the last 24 hours. At the time of writing, it was trading at $1.56 with a market capitalization of over $1 billion.

However, the price uptrend was accompanied by a double-digit decline in trading volume, which is usually a bearish signal.

Things can turn worse in the short term as 24 million OP, which are worth over $36 million, were injected into the market. According to Token Unlocks, the newly unlocked tokens accounted for 3.56% of Optimism’s supply. As of now, 16% of Optimism’s total supply has been released into the market.

Simply put, when supply increases, demand declines, which causes a drop in the price of an asset. Therefore, the chances of a halt to the OP’s bull rally seemed likely. Additionally, a look at the token’s on-chain metrics also gave a bearish notion, despite the recent price gains.

For instance, its MVRV Ratio declined sharply last week. Negative sentiment around OP was dominant in the market, as evident from its weighted sentiment. The whale transaction count dropped, reflecting less willingness of whales to trade the token.

On top of that, Optimism’s open interest dropped. A decline in the metric usually means a trend reversal, increasing the chances of OP’s uptrend ending soon.

Source: Santiment


Realistic or not, here’s OP market cap in BTC‘s terms


Not everything is against Optimism 

Surprisingly, a look at Optimism’s daily chart revealed that the bulls were controlling the market. The Exponential Moving Average (EMA) Ribbon displayed a bullish crossover as the 20-day EMA flipped the 55-day EMA.

OP’s Relative Strength Index (RSI) was moving up. Its Money Flow Index (MFI) also followed the same trend, giving hope for a continued price uptick. Nonetheless, the Chaikin Money Flow (CMF) remained bearish as it was below the neutral mark of 0. 

Source: TradingView

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Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
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