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Optimism: How Whales Can Take OP to $2.60 Soon
The cryptocurrency market has been experiencing a rollercoaster ride in recent times, with many assets showing signs of recovery. One such asset is Optimism (OP), which has been on an upward trajectory despite its one-month struggle after a 22.34% decline. However, it seems that the bulls are gaining strength, and whales can play a crucial role in driving OP’s price to $2.60 soon.
An Increase in Accumulation by Large Investors
The past 24 hours have seen a significant surge in accumulation by large investors in OP. In fact, data reveals that 277 million OP, valued at $501.62 million, were purchased by these investors who hold a substantial portion of the supply. This bulk buying activity is an indication that the market may be experiencing a shift in sentiment towards optimism.
Additionally, there has been a notable spike in average transaction size, reaching levels last seen on November 4th. The increase in both average transaction size and large transaction volume points to substantial bulk purchases, which adds a bullish undertone to the market.
Bullish Chart Pattern
Furthermore, the chart is showing signs of accumulation as well. At the time of writing, OP was trading within an accumulation pattern and forming a golden cross pattern, a bullish setup that has been known to yield significant gains in the past. If this breakout occurs, OP could see a surge in price by 36.98%, reaching $2.60 before either undergoing a re-assessment or continuing its upward momentum.
A Potential Golden Cross Pattern
The development of a golden cross pattern also indicates that trading activity has begun increasing. The golden cross pattern forms when the blue MACD line crosses above the orange signal line. As the data stands, the MACD line is at -0.001 and the signal line is at -0.004. If this crossover occurs, it may trigger a major price surge.
Rise in Interest for Derivatives
Additionally, there has been an increase in interest for derivatives by OP buyers, as shown by its Funding Rate on Coinglass. The Funding Rate tracks the mechanism used to balance price disparities between the spot and futures markets. A positive funding rate signifies bullish sentiment, while a negative rate indicates bearish sentiment.
Currently, the Funding Rate is at 0.00132%, indicating that long positions are dominant, thereby maintaining price equilibrium. This dominance suggests that OP’s price may continue rising from its current level.
In conclusion, with whales and large investors showing increased interest in OP, there seems to be a strong likelihood of it reaching $2.60 soon.
Source: ambcrypto.com
