Optimism (OP) is back in the spotlight once again. According to Tokenomist’s latest report, 31.34 million tokens worth around $24.87 million are scheduled to enter the market today. This release will account for 1.89% of OP’s total market capitalization.
The upcoming supply unlock event has renewed traders and investors’ interest. Especially since OP’s market might be eyeing a potential bullish run in the near future.
Technically, since February’s breakdown from the flag pattern, OP has come under constant pressure to the downside. However, the trend is turning bullish now after the altcoin surged from a key support zone at about $0.5858, way back on 7 April.
The altcoin has since registered a spectacular 54% bullish run since the bounce – A sign of growing bullish momentum.
Source: TradingView
This price recovery is especially notable considering the broader market’s volatility. It also means that Optimism is beginning to regain some strength, possibly fueled by growing institutional appetite.
Supply inflows meet increasing demand
The forthcoming token unlock will take place at a time when on-chain metrics are already showing encouraging signals. Now, although a hike in supply tends to produce selling pressure, recent data seemed to suggest otherwise.
Daily active addresses across the Optimism network have grown by 62% over the past 24 hours, according to IntoTheBlock data. This hinted at greater usage and network participation.
Volatility in OP’s price has also fallen in recent times. This is usually seen as an indication of sudden action, especially when accompanied by rising demand. With institutional investors amplifying exposure in top altcoins, OP can look to benefit from the injection of liquidity.
Source: IntoTheBlock
Resistance zone at $1 in focus
In light of the hike in network activity and positive sentiment, Optimism could be positioning itself for another leg higher. If trends persist, the altcoin could retest the $1-resistance level. This is a psychological price level that was previously tested before the February breakdown.
However, its short-term price action will likely be influenced by how the market will digest the newly issued tokens. If demand continues to outweigh supply, it may support a breakout rally in the near term.
What next for Optimism?
As the token unlock goes on, market investors will be observing closely for any sign of accumulation or distribution. On-chain strength, reduced volatility, and growing active addresses suggested OP may have the potential to go higher. Even with the added supply.
The next few days can potentially set the tone for its medium-term trajectory.
