Optimism (OP) Price Volatility as Token Issuance Sparks Community Interest
The Optimism (OP) team recently announced the issuance of tokens worth almost $180 million, which caused the price of OP to fluctuate below the $1.30 mark. This article will analyze the potential movements of the Optimism price in the coming days based on on-chain data.
Network Growth Surges as Token Issuance Generates Community Interest
The airdrop of 19 million OP tokens, valued at approximately $25 million, and the private token sale of 116 million OP tokens, totaling $153 million, have attracted a significant number of new users to Optimism. On September 15, just before the airdrop, Optimism recorded 90,604 new wallet addresses, which is comparable to its mainnet launch date in May 2022.
Airdrop Beneficiaries Opt for HODL Strategy
While beneficiaries of the private token sale are subject to a two-year lockup period, 31,000 participants who received tokens from the airdrop have chosen to hold onto them. This is evident from the negative trend in OP Exchange Netflows since the airdrop distribution on September 18. The decrease in exchange reserves indicates that many beneficiaries are opting to keep their tokens rather than selling them immediately.
Potential Rebound Toward $1.50
If a significant number of airdrop beneficiaries continue to hold their tokens, it could drive up demand and push the OP price above $1.50. The Global In/Out of Money Around Price (GIOM) data also suggests that if Optimism surpasses the initial resistance at $1.34, it could rally towards $1.50. However, the presence of addresses that bought OP tokens at an average price of $1.48 could pose a challenge for the bulls.
Hot Take: Optimism Price Outlook
The current surge in network growth and the HODLing behavior of airdrop beneficiaries indicate a positive outlook for the Optimism (OP) price. If these trends continue, there is a potential for a rebound towards $1.50. However, if the price drops below $1, it could signal bearish sentiment. Overall, the market movements will depend on the actions of token holders and the level of community interest in Optimism.
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