Optimism’s (OP) price is now at the cusp of initiating a recovery after following the bearish broader market cues.
The altcoin is finding support from its investors, which could translate into OP reclaiming $2 as support.
Optimism Investors Help Trigger a Rise
Optimism’s price, $1.7, is observing a positive reception from investors who are now pining for a price rise. The first sign of this is visible in the Market Value to Realized Value (MVRV) ratio.
The MVRV ratio measures investor profit/loss. Optimism’s 30-day MVRV at 10% signals losses, potentially prompting buying. Historically, OP MVRV between -10 % and -20 % often precedes recoveries and rallies, terming it an opportunity zone for accumulation.
Optimism MVRV Ratio. Source: Santiment
In addition, the investors are holding off on selling their holdings. Upon observing the active addresses by profitability, less than 5% of the participating investors are in profit.
Crossing the 25% mark of OP holders in profit is considered a bearish sign, indicating profit-taking. On the other hand, lower participation is a bullish sign as it suggests HODLing among investors.
Optimism Active Addresses by Profitability. Source: IntoTheBlock
This could aid the altcoin in noting a recovery.
OP Price Prediction: Taking Back the Losses
Optimism’s price, trading at $1.7 at the time of writing, is bouncing back from support at $1.6. The altcoin’s target is to reclaim $2.0 as a support floor, for which breaching $1.8 is necessary. The rise is being supported by investors’ bullishness; however, the chances of recovery remain bleak until $2.0 is secured.
Optimism Price Analysis. Source: TradingView
If this fails, Optimism’s price could remain consolidated under $1.8 or subdued under $2.0. Any decline below this line would invalidate the bullish thesis, extending the losses.