[Optimism (OP) price under pressure due to whale selling]
Optimism's price gains are likely to slow as investors continue to move their holdings online. Two major groups, whales and long-term holders, are exhibiting bearish trends, which may soon impact the price.
Addresses holding between 1 million and 10 million OP recently bought over 52 million OP in one day. However, the next day they sold 30 million OP worth about $78 million. This shows that these large investors are not accumulating out of confidence, but may be to take profits.
Additionally, long-term holders (LTH) have also sold large positions recently. These investors typically hold assets for more than a year, and their actions are often bearish signals.
The impact of their actions can be assessed through the Age of Attrition metric. This indicator shows the total volume of a move multiplied by the number of days since the last move, providing insight into long-term holder sentiment.
A surge in this indicator hints at rising bearish sentiment among LTHs, who may be looking to sell their positions. OP has seen its largest surge since September 2023, raising concerns about future price movements.
Optimism’s price has been rising over the past month and a half, taking this altcoin to $2.68 at the time of writing. However, during this period, OP made two attempts to break through the $2.99 resistance, but failed both times.
The altcoin also consolidated $2.33 as a key support level and these will be areas for consolidation going forward. A bearish signal would see Optimism’s price action move sideways.
However, a breakout or crash could change this sentiment. A breakout is more likely than a crash. A break above $2.99 would take OP through $3.17 and towards $3.59, which would also invalidate the bearish outlook.