[Optimism price trend looks bearish, but holders enjoy profits]
The price of Optimism (OP) is rising as market sentiment improves, recovering to the area above the 20-day exponential moving average (EMA) over the past 24 hours. OP bulls are back in the market, taking comfort from short-term investors and traders of derivatives. However, OP's performance remains inconsistent this month due to high volatility.
On-chain data shows that traders’ profitability has improved, with the 30-day moving average showing that the number of profitable trades exceeds that of losing trades. At press time, the 30-day average ratio of on-chain trading volume was 0.89, and the intraday profit-to-loss ratio was 1.35, meaning that for every losing trade there were 1.35 winning trades.
Derivatives traders were also betting long, with open interest rising nearly 13% to $71 million from $63 million. 24-hour trading volume reached $154.09 million, with a volume-to-market-cap ratio of 9.93%, indicating low volatility. CoinMarketCap’s community sentiment indicator shows 74% bullish.
Technically, OP price is above the 20-day EMA, showing a short-term bullish signal, but is under longer-term bearish pressure below the 200-day EMA. Fibonacci retracements show that a break above $1.6 could see the price rise further towards the 200-day EMA and the $2 level, while a break below $1.25 could confirm the bearish trend.
The MACD line and signal line are above the zero line, indicating a short-term bullish trend. Overall, OP is currently showing a bullish signal and could see further gains if it breaks through key resistance levels.
