Optimism whales step up accumulation as they take advantage of the OP dip

Posted: September 7, 2023

• OP whales have collected $60 million within the final two months.
• The token has the potential to achieve $.1.5 if shopping for strain will increase.

In keeping with Santiment, Optimism [OP] whales holding 10,000 to 1 million tokens have been aggressively accumulating. The on-chain analytic platform, in its 6 September insight famous that these whales have purchased about OPs price practically $60 million within the final 60 days.

How a lot are 1,10,100 OPs price immediately?

Not ready for greed season

Shopping for tokens this fashion could be related to the sentiment that the cryptocurrency could also be undervalued. Due to this fact, Santiment concluded that the whales have been shopping for the dip as proven within the chart beneath.

Supply: Santiment

From the picture above, the black arrow denoted the buildup part of the aforementioned cohort. The blue circle represents transactions price $100,000 whereas the purple circle represents the promoting part.

So, the rise obtained from the blue circle and black arrow instructed that the transactions behind the buildup have been price $100,000 or extra at a number of intervals.

Though Optimism’s efficiency within the final yr was a 9% hike, the cryptocurrency’s efficiency within the final 30 days was a 23.15% decline. As per the technical outlook, the 20-day EMA (blue) had crossed beneath the 50-day EMA (yellow).

The crossover signifies the quick to intermediate development is bearish. So, the probably motion to take is to quick/promote OP. For the long run, the 200 EMA (purple) offers an perception into the attainable trajectory.

Eyes on the uptrend 

On the time of writing, the 200 EMA was above each the 50 and 20 EMAs. This instructed that OP may flip bullish in the long run. Thus, whales’ shopping for the dip could possibly be geared towards the long run moderately than the token’s short-term efficiency.

Nevertheless, the Shifting Common Convergence Divergence (MACD) was 0.003. Optimistic values of the MACD counsel an rising momentum. Additionally, the blue dynamic line was above the orange line, which means patrons have been trying to neutralize the promoting strain.

If the MACD will increase and the blue line jumps into the constructive area, then it could possibly be a superb time to lengthy OP, and the value may probably rise to $1.4 or $1.5.

Supply: TradingView

Moreover, Optimism’s weighted sentiment had risen to 1.184. The weighted sentiment measures the distinctive social quantity or constructive/commentary about an asset. 

Damaging values of the weighted sentiment imply the crypto neighborhood didn’t understand the stated asset to be worthwhile within the quick time period.

Learn Optimism’s [OP] Worth Prediction 2023-2024

So, Optimism’s weighted sentiment meant that market members have been optimistic concerning the OP worth motion. Energetic addresses on the Optimism community additionally elevated to 17,700.

The hike within the metric is an effective indicator of day by day customers on the Optimism blockchain, implying an increase in profitable transactions.

Supply: Santiment