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Optimism buyers, look out for the selling pressure because…
The recent surge in daily active addresses of Optimism (OP) has sparked optimism among investors, but it’s essential to note that the market is still under immense bearish pressure. According to recent data from IntoTheBlock, the number of daily active addresses rose by 28% and further increased by a staggering 9.9% over the past week. This sharp increase in activity might lead some investors to believe that OP has finally turned around, but the reality is far from it.
In fact, the OBV (On Balance Volume) suggests that selling pressure has not slowed down, contradicting the notion of an imminent reversal. The Supertrend indicator continues to flash a sell signal, serving as a stark warning for those looking to invest in OP at this juncture.
Furthermore, the moving averages reveal bearish momentum, reinforcing the notion that Optimism is far from being out of the woods. It’s essential to keep in mind that even though there might be some hope for lower timeframe bullish traders, it would be unwise to ignore the prevailing trend.
What’s more worrying, however, is the fact that a significant portion of OP holders are whales and investors. This raises concerns regarding the lack of decentralization within the Optimism ecosystem. Not only does this undermine the prospects of widespread adoption, but also suggests that a handful of entities could potentially dictate market movements.
In conclusion, while it’s natural to be excited about the sudden surge in daily active addresses, it would be prudent for buyers to exercise extreme caution due to the overwhelming bearish pressure and lack of retail participation.
Source: ambcrypto.com
