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Optimism’s Addresses Jump 28%, But Can OP Escape the $0.57 Trap?
Optimism has witnessed a remarkable surge in active addresses, with a staggering 28% increase over the past week. However, despite this upbeat on-chain activity, the token is struggling to break out of its prolonged downtrend, currently stuck near the critical $0.57 mark.
The recent rise in user engagement can be seen as both positive and negative news for OP enthusiasts. On one hand, it demonstrates a strong interest among users and could potentially ignite a sustainable price reversal. On the other hand, this newfound optimism may only serve to further entrap investors within an overbought and increasingly precarious trading environment.
The past week saw OP’s active addresses surge by 28%, outpacing its peers in the Layer 2 networks sector, according to Nansen data. This uptick in network engagement has come at a time when OP’s price action remains stubbornly stuck near long-term support levels.
In the short term, this dichotomy may not bode well for traders who had hoped for a swift recovery from current levels. With prices hovering between key liquidation clusters below $0.558 and dense short liquidations forming above $0.575, any significant break or breakdown could quickly escalate into an explosive move fueled by cascading long and short liquidations.
Despite the impressive growth in user engagement, technical and valuation metrics remain uncertain, suggesting that the market remains decidedly in the neutral zone. The current $0.566 price point marks a familiar resistance, with the token having repeatedly tested this level without breaking through it. In an environment where NVT ratio signals potential overvaluation, traders must exercise caution before committing to any long positions.
OP’s users’ growing interest may have sparked hopes of a swift turnaround, but the token still requires a decisive move above the short liquidation cluster or below $0.55 to break free from its current stagnation.
Source: ambcrypto.com
