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Whales hold 84% of OP as 60% rally predicted

Whales hold 84% of OP as 60% rally predicted

GrafaGrafa2024/11/20 13:37
By:Liezl Gambe

Crypto analyst Michaël van de Poppe has forecasted a significant 60% rally for Optimism (CRYPTO:OP) if it breaks through its key resistance at $1.83.

Layer 2 networks like OP are gathering momentum, following the path of Layer 1 projects that have already experienced major gains.

Van de Poppe emphasised that a breach of the $1.83 resistance could trigger a substantial price surge.

As of now, OP is trading at $1.77, reflecting a modest 1.35% increase in the past 24 hours, despite a weekly decline of 1.30%.

Sellers have been defending the $1.83 level, keeping OP's price confined between $1.70 and $1.83.

Key support at $1.70 remains a critical level to watch for potential pullbacks.

Should OP surpass the $1.83 resistance, it could quickly approach the next major target at $2.00, with some analysts projecting a potential climb to a range between $3.25 and $3.50, contingent on favorable market conditions.

Technical indicators for OP show mixed momentum.

The Relative Strength Index (RSI) sits at 55.07, suggesting moderate bullish momentum with room for further upward movement.

However, a decrease in RSI could signal weakening momentum, leading to a potential retest of support levels.

The Moving Average Convergence Divergence (MACD) indicator offers a more positive signal, as the MACD line remains above the signal line, indicating sustained buying pressure, though a narrowing histogram points to slowing momentum.

On-chain data highlights that 84% of OP’s supply is held by large investors, or whales, showcasing significant concentration and influence over price movements.

Approximately 50% of OP holders are currently in profit, while 41% are at a loss, suggesting a balanced market outlook.

Market activity has been strong, with $1.25 billion in large transactions over the past week and net exchange inflows of $366,040, indicating increased trading and potential accumulation by significant market participants.

At the time of reporting, the Optimism (OP) price was $1.74. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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