Optimism (OP) Holders Enjoy Profits Despite Market Fluctuations Optimism (OP) Holders Enjoy Profits Despite Market Fluctuations
Optimism holders seemed to be turning profitable despite the mixed performance of OP in the recent sessions.
The Open interest contracts have surged by nearly 13% a day indicating a buyers comeback.
Optimism (OP) price seemed to be stretching on the higher side amid the improved market sentiments. OP was observed to be reclaiming the positive territory above the 20 day EMA intraday.
Moreover, The bulls seemed to be returning back in the last couple of sessions which has added a relief to the short term investors as well as derivatives traders. However, the performance of Optimism has been mixed so far this month due to high volatility.
Despite a mixed performance, an on-chain data highlights more traders turning profitable than the previous months, indicating a resilience in the trading behavior.
Optimism Holders Turning Profitable
The daily ratio of Optimism's transaction volume in profit to loss, assessed using a 30-day moving average, shows that more transactions have been profitable than those resulting in a loss over the past month. The average 30 day ratio of on-chain transaction volume was at 0.89 at the time of writing.
While, the intraday ratio of on-chain transaction volume profit to loss was at 1.35 suggesting that for every Optimism transaction which ends up in loss, 1.35 transactions result in a profit.
Furthermore, the derivatives traders seemed to be betting on the long side which could further drive the OP price higher. As per the analysts, the Open interest contracts witnessed a jump of nearly 13% rising from $63 Million to $71 Million in a day.
The 24 hour transaction volume had reached $154.09 Million a day. Also, the volume to market cap ratio at 9.93% suggests mild volatility in the crypto. The community sentiment indicator suggests 74% bullish as per the data by CoinMarketCap.
Can Optimism Be A Bullish Bet For September
From a technical standpoint Optimism price hovers higher than the 20 day Exponential moving average indicating a bullish outlook in the short term However, the price faces a long term bearish pressure below the 200 day EMA. As of now, Optimism lags 44% below the 200 day EMA.
Moreover, while applying Fibonacci retracement tool from recent swing high at $1.97 to recent swing low at $1.05 level, it was observed that Optimism was currently hovering near the golden zone of Fibonacci retracement tool.
Now, if OP manages to surpass the golden zone at $1.6 level it may indicate a price continuation on the higher side towards the 200 day EMA and $2 psychological level. On the contrary, if OP price suffers bearish pressure and looms below $1.25 level, it may validate a bearish trend continuation.
The MACD line and signal line has surpassed the zero line indicating bullishness in the short term. Moreover, a positive divergence between both the lines adds further confirmation to it.
Optimism was showing bullish signs, reclaiming positive territory above the 20-day EMA. The daily ratios of transaction volume in profit to loss indicate more profitable transactions in the recent sessions. Moreover, the derivatives traders are betting long, with open interest contracts rising by 13%.
From a technical perspective, OP was hovering above the 20-day EMA but suffering long-term bearish pressure below the 200-day EMA. Now, if the price surpasses the $1.6 level, it may continue rising towards the 200-day EMA and $2. Conversely, falling below $1.25 could validate a bearish trend.
