- Optimism saw steady hikes in the daily active addresses
- Selling pressure behind OP has not slowed down, with the OBV attesting the same
Optimism [OP] saw a 28% hike in daily active addresses recently. And, this figure has continued to rise since. In fact, over the past week, an additional 9.9% hike in active addresses was seen, according to data from IntoTheBlock.
A spike in activity on 27 June was a contributor here.
The concentration indicator underlined the distribution of OP’s circulating supply. Nearly 60% resided within whale wallets, and a further 23.8% was with investors. Here, investors are classed as addresses holding 0.1%-1% of the supply, while whales hold 1% or more.
The low share of retail holders indicated that Optimism might not be highly decentralized, raising some concerns regarding widespread adoption. There also seemed to be the threat of whales having greater power to move prices.
The supply distribution showed that addresses holding 1M – 10M OP have been accumulating throughout the month. From holding 836.96M OP on 01 June, they accumulated nearly 50M more OP. Meanwhile, the 10M – 100M OP holders cohort sold 43M OP from their holdings.
On-chain data showed that even though on-chain activity was high, whale accumulation was not very visible. Hence, Optimism might struggle to recover from its slump since January.
Bearish pressure on OP has not abated
Source: OP/USDT on TradingView
The OBV has been sinking lower since March, highlighting how the selling volume was greater than the buying volume on green days. The swing market structure was bearish as the token slipped below its two-month range in mid-June.
The Supertrend indicator continued to flash a sell signal, and the moving averages revealed bearish momentum. However, there could be some hope for lower timeframe bullish traders.
Over the past couple of days, a bullish market structure break (white) was seen. A lower timeframe demand zone was present at $0.56, which could yield a buying opportunity for traders in the coming days.
And yet, the prevalent trend was bearish, and traders should set tight stop losses if they are planning to go long.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
