Optimism has encountered some difficulties in the Layer-2 sector due to recent market fluctuations. Despite showing a significant increase in weekly trading volume, it has recently returned to average levels. However, the total locked value continues to rise. Looking at OP’s price charts, it can be seen that it has been trading in a range of $0.895 to $1.87 since May.
Although the market structure in the three-day chart shows an upward trend and the Relative Strength Index (RSI) exhibits strong upward momentum, it is indicated that there may not be a move above $1.9. On the other hand, the On-Balance Volume (OBV) has not reached new highs since August, indicating that buying volume is not dominant. However, the Chaikin Money Flow (CMF) crossing above +0.08 suggests a significant capital inflow into the OP market. A sell order block at $1.8 is resisting the efforts of bulls.
Before another uptrend above $2, a daily closing above $1.88 may be needed. Although OP faces resistance on a larger time frame, there has not been a significant increase in the circulating supply of OP. The average age of the cryptocurrency continues to increase, indicating that accumulation is ongoing. Social volume also showed an upward trend last month, suggesting that OP holders are not yet willing to sell.
Despite the challenges in the Layer-2 sector, Optimism has experienced an increase in weekly trading volume and its performance on price charts remains uncertain. Determining whether there will be a move above $1.9 can be difficult based on the charts.
