Optimism (OP) Price Shows Bullish Signs, Can It Sustain the Momentum?

The Optimism (OP) price seemed to be stretching on the higher side amid the improved market sentiments. Its price appeared to be reclaiming the positive territory above the 20-day EMA during the last 24 hours.

The price of Optimism (OP) appeared to be rising amid improving market sentiment, as it seemed to be reclaiming the positive territory above the 20-day EMA during the last 24 hours.

The entry of the OP bulls in the last couple of sessions seemed to have consoled short-term investors and derivatives traders. However, the Optimism token’s performance appeared to be mixed so far this month due to high volatility.

Despite the mixed performance, the on-chain data highlighted that more traders were turning profitable than in previous months, indicating resilience in the trading behavior.

Optimism (OP) Price Turning Profitable

The daily ratio of Optimism token’s transaction volume in profit to loss, assessed using a 30-day moving average, showed that more transactions were profitable than those resulting in a loss over the past month. The average 30-day ratio of on-chain transaction volume stood at 0.89 at the time of writing.

The intraday ratio of on-chain transaction volume profit to loss was at 1.35. It suggested that for every Optimism transaction that ends up in a loss, 1.35 transactions resulted in a profit.

Furthermore, the derivatives traders appeared to be betting on the long side, which could further drive the OP price higher. As per the analysts, the Open interest contracts witnessed a nearly 13% jump. They rose from $63 Million to $71 Million in a day.

The 24-hour transaction volume also reached $154.09 Million a day. OP’s volume-to-market cap ratio of 9.93% suggested mild volatility in the token. The community sentiment indicator suggested 74% bullish as per the data featured on the CoinMarketCap platform.

Can Optimism Be a Bullish Bet for September

From a technical standpoint, the Optimism price traded over the 20-day Exponential moving average at press time. That indicated a bullish outlook in the short term. However, the price faced a long-term bearish pressure below the 200-day EMA. So, the token price lagged 44% below the 200-day EMA.

When applying the Fibonacci retracement tool from the recent swing high at $1.97 to the recent swing low at the $1.05 level, the OP price appeared to be hovering near the golden zone of the Fibonacci retracement tool.

So, if it surpasses the golden zone at the $1.6 level, it may indicate a price continuation on the higher side towards the 200-day EMA and the $2 psychological level.

On the contrary, if the OP price suffers bearish pressure and falls below the $1.25 level, it may validate a bearish trend continuation.

The MACD line and signal line have crossed above the zero line, indicating bullishness in the short term. Moreover, a positive divergence between both lines also confirmed bullishness.

How the OP Price May Perform in the Near Future?

The Optimism token showed bullish signs, reclaiming the positive territory above the 20-day EMA. The daily ratios of transaction volume in profit to loss indicated more profitable transactions in recent sessions. Moreover, the derivatives traders are betting long, and open interest contracts rose by 13%.

From a technical perspective, the OP price hovered above the 20-day EMA but suffered long-term bearish pressure below the 200-day EMA.

So, if the price surpasses the $1.6 level, it may keep rising toward the 200-day EMA and the $2 level. Conversely, falling below $1.25 could validate a bearish trend.

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