The recent price drop in Optimism has helped a strong buy signal resurface, with long-term holders at record low levels.

Optimism Price Analysis

Optimism (OP) has plunged by 9.6% in the past 24 hours and is trading at $1.33 at the time of writing. The asset has been on a constant decline from its all-time high of $4.85 on March 6. OP’s market cap is currently at $1.57 billion, making it the 48th-largest cryptocurrency. On the other hand, the token’s daily trading volume increased by 23%, reaching $145 million.

Technical Indicators

According to data from market intelligence platforms, the OP Relative Strength Index (RSI) is at 41 at the reporting time. This indicator shows that Optimism is slightly oversold at this price point.

Data indicates that long-term OP holders have remained motionless despite the recent price fall.

Over the past 24 hours, Optimism’s one-year dormant circulation dropped from 132,510 to 14,701 tokens, marking a one-month low.

The OP daily active addresses divergence is at 114% at the reporting time. This indicates a strong buy signal for OP, while the heightened trading volume hints at high price volatility.

Funding Rate and Market Sentiment

The total funding rate for Optimism rose from negative 0.003% to 0.002% over the past day. Traders are bullish on OP’s price surge, but it’s important to note that macroeconomic events could significantly impact financial markets, including cryptocurrencies.

Analysts believe that macro pressure could potentially put the crypto ecosystem in tension over the next few weeks.

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