As July 2024 progresses, notable peaks in most altcoins remain unseen, largely due to Bitcoin‘s (BTC) ongoing cycle failure to achieve the desired peak. Today, BTC attempted another dip below $60,000, reflecting a 10-day trend of increasing negativity. Such continuous selling poses risks for deeper lows in altcoins.
Why is Optimism (OP) Important Now?
BTC’s price held at $60,400 after briefly hitting $59,600 earlier today. Optimism (OP) has reached new lows, yet there’s a growing indication that investors are transitioning from selling to accumulating. This shift hints at a potential bottoming out and recovery, although BTC remains the key influencer. Currently, the ratio of profitable investors to active addresses is under 5%, suggesting weakening selling pressure.
Additionally, the Market Value to Realized Value (MVRV) ratio over 30 days is at -28%, indicating excessive selling. Historically, an MVRV ratio between -15% and -30% often precedes recovery and significant rallies. Based on these metrics, alongside the broader market sentiment, recovery for OP Coin might be on the horizon, making current levels appealing.
What Does the OP Coin Price Forecast Say?
OP Coin’s price dropped to $1.68, a 6% decline influenced by macroeconomic factors and potential large BTC sales. BTC’s extended period of sideways trading without breaking key resistance or support levels suggests possible upcoming volatility. Should the predicted scenario for OP Coin unfold, prices could ascend to $2, with $2.82 as the next target. Conversely, falling below $1.66 might lead to a decline to $1.55.
Key Takeaways for Investors
– Investors are shifting from selling to accumulating Optimism (OP), indicating potential recovery.
– The MVRV ratio suggests that OP Coin might be undervalued, opening opportunities for future gains.
– Volatility in BTC prices could significantly affect altcoin movements, including OP Coin.
Currently, BTC trades at $60,400, with ETH facing challenges to hold the $3,300 mark. Despite positive macroeconomic data expected on Friday, the supply of BTC from jurisdictions like Germany, the US, and MTGOX remains a major concern for investors.