The price of Optimism’s native token, OP, has been facing challenges in maintaining its recent bullish momentum. Despite experiencing a significant rally, with the price going from a low of $1.2 to a high of nearly $2.5, the cryptocurrency has encountered a pullback. While OP has managed to retain a majority of its profits, it seems to be struggling to continue its upward trajectory. On-chain data analysis suggests that there might be a key obstacle preventing the Optimism price from reaching new highs.
Renowned crypto analyst Ali Martinez recently shared his bullish projection for the Optimism price based on on-chain data from IntoTheBlock. The analysis revolves around the density of investors who purchased the OP token at specific price zones. Notably, approximately 26,800 addresses acquired around 45 million tokens within the price range of $2.17 to $2.23. The chart illustrates the density of investor activity around the current value of Optimism. The size of the dot represents the number of investors buying the OP coin at each price range. It is worth mentioning that a larger dot indicates a more significant level of resistance or support at a particular price zone.
Martinez pointed out that the Optimism price is currently encountering resistance at the $2.17 to $2.30 zone, where a substantial number of addresses purchased 45 million tokens. This range, according to the analyst, should be closely monitored due to the considerable buying activity within it. A sustained close above this zone could potentially signal a bullish breakout, with the price of OP potentially reaching $2.70, denoting a growth of over 26% from its current value.
A Sluggish Performance
As of now, the Optimism price sits at $2.11, experiencing a 2.4% decline in the past 24 hours. This decline underscores the struggles faced by OP over the past week. Although the cryptocurrency reached a multi-month high of $2.46 earlier in the week, it has since undergone a correction and is now trading around $2.10. Nevertheless, Optimism still holds a position among the top 40 cryptocurrencies in the market, boasting a market capitalization of approximately $1.94 billion.
The recent performance of the Optimism price has revealed signs of struggle, with its prior bullish momentum fading away. As the cryptocurrency faces resistance at the $2.17 to $2.30 zone, investors closely monitor the buying activity within this range for a potential breakout. While the price has experienced a decline in the past 24 hours, it still remains a significant player in the cryptocurrency market. As with any investment, it is crucial to conduct thorough research and consider the risks involved before making any financial decisions.