Whales steadily accumulate Optimism despite OP’s recovery challenges

October 04, 2023 02:37 AM PDT | By Invezz

Whales steadily accumulate Optimism despite OP’s recovery challenges — Image source: Invezz

Optimism (OP) price stuck in downtrends

Optimism exhibited bearishness on Wednesday, losing around 5% over the past day. Changing hands at $1.30 during this publication, OP remained stuck in downtrends since early August.

Technical indicators suggest upside challenges for the crypto as it stayed beneath the 50-day, 100-day, and 200-day EMAs throughout September. Further, the current confluence of the 50-day EMA and the $1.36 resistance confirm it could be challenging for Optimism to overcome its downside stance.

Moreover, the Relative Strength Index swayed under the 50-neutral level, making OP susceptible to continued dips. These conditions can attract bearish moves to $1.06. Failure to retain this foothold might catalyze devastating plunges for Optimism.

However, a rebound from $1.06 would trigger recoveries for the altcoin, possibly pushing OP past its significant resistances. A decisive climb past $1.3 would annul Optimism’s bearish outlook.

Whales capitalizing on discounted prices

While Optimism struggled with bearishness over the past months, crypto whales took the situation as an opportunity to stack more coins. Santiment data shows wallets holding 10,000 – 10 million OP tokens have steadily accumulated.

Also, the 100,000 – 1 million and 1 million – 10 million cohorts have purchased more OP coins over the past few months. These whales will likely enjoy substantial returns once Optimism’s price soars past $1.36.

Besides whale accumulation, Optimism displayed bullishness in various metrics, including improved social engagement, heightened developer activity, and amplified transactions.

$OP || It's popular and it's being used.

Social volume
One of the highest scores of the projects I have researched in the last weeks. It's talked about many times. not only that…
Increasing holders and whale accumulation
The chart below shows that the total amount of OP… pic.twitter.com/S7iMrQ3mEZ
— iWantCoinNews📈 (@iWantCoinNews) September 7, 2023

Furthermore, Optimism Network continues to build in pursuit of decentralization. Tuesday’s blog post shows the platform’s developer OP Labs launched the first fault-proof testnet, eyeing more decentralization.

However, the altcoin experienced an uptick in short-term traders (players who hold crypto for not more than a month). That can challenge OP before recording the expected surge.

Optimism has seen short-term traders increase by 8% within the last month, making OP susceptible to price dips amid unexpected selling. Thus, individuals looking to benefit from moves by whales should consider how these short-term investors perform.

Nonetheless, savvy investors trust long-term goals pay in the crypto space, and accumulation by dip-pocketed investors show faith in potential future surges.

The post Whales steadily accumulate Optimism despite OP’s recovery challenges appeared first on Invezz.

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