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Optimism’s daily active addresses surged by 26%, signaling a temporary boost in network engagement despite underlying concerns.
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Exchange inflows of OP tokens have increased significantly, hinting at potential sell pressure amid weakening momentum.
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According to COINOTAG data, short liquidations on OP have spiked, indicating heightened volatility and possible short-term price rebounds.
Optimism’s active addresses spike contrasts with rising exchange inflows and weak momentum, raising questions about OP’s price sustainability and market sentiment.
Exchange Inflows Surge Amidst Declining User Participation
Over the last 24 hours, Optimism has seen a notable increase in exchange inflows, with more than 662,000 OP tokens moving onto exchanges. This trend extends over the past month, totaling approximately 1.6 million OP. Such a consistent flow suggests that holders may be positioning to liquidate their assets, reflecting a cautious or bearish sentiment despite the token’s recent price stagnation around $0.60. Meanwhile, the number of active addresses has halved from 170,000 to 80,000, underscoring a decline in broader user engagement. This divergence between token movement and user activity raises concerns about the network’s ability to sustain growth without renewed adoption or demand.
Source: IntoTheBlock
Critical Support Zone at $0.58–$0.60 Faces Pressure
Optimism’s price has been consolidating around the $0.58 to $0.60 support zone, a level that has historically provided a floor for OP. Despite repeated tests, the market has yet to establish strong momentum, as evidenced by flat MACD readings and subdued trading volumes. A decisive break below this range could trigger accelerated selling, especially if exchange inflows continue unabated. Conversely, maintaining this support could enable a short-term rebound, potentially attracting opportunistic buyers. This zone remains pivotal for OP’s near-term price trajectory, serving as a battleground between bulls and bears.
Source: TradingView
Binance Traders Show Waning Bullishness on OP
Data from Binance reveals that 69.47% of traders hold long positions on OPUSDT, while 30.53% are short. Although this indicates a majority bullish stance, the proportion of longs has decreased from over 80% earlier this month, signaling growing trader caution. This decline in bullish conviction coincides with the token’s struggle to gain upward momentum near critical support. The lack of decisive buying pressure suggests that traders are hesitant to commit fully, awaiting clearer market signals before increasing exposure.
Source: Coinglass
Short Sellers Face Increasing Risk of Liquidation
Recent liquidation data reveals a significant disparity between short and long positions on OP. Shorts have incurred $148,680 in liquidations, while longs faced only $26,290 in losses. This imbalance suggests that bearish traders are vulnerable to sudden price spikes, especially near the critical $0.60 support. Short squeezes could trigger rapid upward moves, providing temporary relief for OP. However, without stronger fundamentals or increased network activity, such rebounds may be fleeting and insufficient to reverse the overall downtrend.
Source: CoinGlass
Conclusion
While Optimism’s recent surge in daily active addresses offers a glimmer of renewed interest, the broader market signals remain mixed. Rising exchange inflows and declining trader confidence highlight underlying vulnerabilities, and the critical $0.60 support zone will be decisive for OP’s near-term outlook. Short seller liquidations could provide temporary price relief, but sustained recovery depends on stronger user adoption and renewed buying momentum. Investors should monitor these key indicators closely to gauge whether Optimism’s current activity marks a genuine turnaround or a transient bounce within a fragile market structure.
