The recent performance of the Optimism price has been somewhat lackluster, as its bullish momentum seems to be losing steam. Although it managed to maintain a majority of its recent profits, the cryptocurrency is facing difficulties in sustaining its upward trajectory. However, an on-chain analysis reveals that there may be a significant obstacle standing in the way of Optimism’s price rise to new heights.
Renowned crypto analyst Ali Martinez recently shared his optimistic projection for the price of Optimism based on on-chain data from IntoTheBlock. This data focuses on the density of investors who acquired the OP token within specific price zones. The analysis revealed that approximately 26,800 addresses purchased around 45 million tokens between the price range of $2.17 and $2.23.
The chart depicting the Optimism price zones reveals the investor density and the significance of resistance and support levels within each price range. The size of the dot in the chart represents the number of investors who bought the OP coin at a particular price range. The larger the dot, the more substantial the resistance or support at that price zone.
Ali Martinez highlighted in his analysis that the Optimism price is currently encountering a major resistance zone between $2.17 and $2.30. The on-chain data indicates that a significant number of addresses, approximately 27,000, purchased a whopping 45 million tokens within this range. This suggests that the price range between $2.17 and $2.30 is crucial to monitor due to the substantial buying activity observed.
The crypto analyst believes that a sustained close above the resistance zone could potentially signal a bullish breakout, propelling the Optimism price towards $2.70. This represents a price growth of over 26% from the current value. However, as of now, the Optimism price stands at $2.11, reflecting a 2.4% decline in the past 24 hours.
The recent sluggish performance of the Optimism price further emphasizes the struggles it has faced over the past week. In the past seven days, the cryptocurrency has experienced minimal changes, despite briefly reaching a multi-month high of $2.46. Following the peak, it has undergone a correction and is now trading around $2.10.
Nevertheless, Optimism remains one of the top 40 cryptocurrencies in the market, boasting a market capitalization of approximately $1.94 billion. This implies that despite its recent challenges, the cryptocurrency still possesses a strong position within the sector. However, it is essential to recognize the potential risks associated with investing, and it is advised to conduct thorough research before making any investment decisions.
The Optimism price has encountered difficulties in maintaining its bullish momentum in recent times. However, an on-chain analysis offers valuable insight into the investor density within key price zones, particularly highlighting a major resistance zone between $2.17 and $2.30. If the Optimism price manages to break through this barrier, it could potentially experience a significant bullish breakout, pushing it towards $2.70. Despite its recent struggles, Optimism remains a prominent player in the cryptocurrency market, emphasizing the need for careful consideration and research when making investment decisions.