Optimism Price is Up 50% this Week: But you Should Consider Selling, Analyst Warns

Key Insights

• Optimism has surged dramatically in recent days, weeks, and months, pushing into the top 30 cryptos by market cap.
• Analyst Ali Martinez warns of a sell signal on Optimism's 12-hour chart.
• Despite price uncertainty, Optimism's network addresses have nearly quadrupled since January 2023.
• Optimism reached a new all-time high above $3.54 in December, exceeding its previous resistance level.
•  If Martinez's sell signal is accurate, OP could face a 48% drop toward the $1.8 support level by year-end.

In terms of bullishness, few other cryptocurrencies compare to the prowess of Optimism.

This cryptocurrency has been enjoying a remarkable price rally over the last few days and has been bullish on all timeframes so far.

Optimism has even pushed itself upwards into ranking as one of the top 30 cryptos by market cap.

However, a crypto analyst has warned that you should consider selling, and here is his reason.

Optimism Price Surges

CoinMarketCap data shows that Optimism is up by 10.2% over the last day, by 50% over the last week, and by 75% over the last month.

At the time of writing, Optimism even sits at around $3.2 billion and boasts a market cap of $2.9 billion.

Even more impressive is the cryptocurrency's $1 billion transaction volume processed today alone.

However, things might get painful from here, according to Ali

Optimism Price Is Facing Some Bearish Pressure, Analyst Says

Ali Martinez, one of the most famous crypto analysts on Twitter, recently dropped the bearish anchor on Optimism.

In this tweet, Ali mentioned to his 37k followers that Optimism might have now entered a range in which investors are considering selling their holdings.

Martinez cited the TD (Tom DeMark) sequential indicator as the basis for his analyses and says that the indicator is currently flashing a sell signal on Optimism's 12-hour price chart.

In essence, this means that Optimism may have now reached a local top and could be heading for a correction.

As proof of this prediction, Martinez says that this same indicator predicted the initial surge in Optimism earlier in December when the OP token jumped from $1.50 to $2.70 in just four days.

Overall, Martinez argues that the current sell signal might have a similar effect on Optimism now, and cause a drastic drop in its prices.

Optimism Network Continues to Grow Despite Price Uncertainty

From another perspective, Optimism has grown and expanded over the years and continues to do so.

This observation is based on a recent tweet from IntoTheBlock.

According to IntoTheBlock, the Optimism network now boasts more than 5.9 million addresses and is now up by nearly 400% from where it sat at 1.2 million in January 2023.

This shows that Optimism's on-chain metrics, just like its price, have been on the rise as of late.

Optimism As 2023 Draws To A Close

Optimism's rally over the last two months has brought it into a new ATH.

As of Friday, 22 December, Optimism broke above its previous $3.2 resistance and hit $3.544 as shown below.

As with a year-end price prediction, however, things get a little bit red from here.

For example, Optimism was trading inside a symmetric triangle, before breaking out and targeting the new $3.5 ATH as shown below.

If Ali turns out to be right and we indeed see a price rejection from $3.5, Optimism will likely fall by another -48% over the rest of the year to the $1.8 support, and possibly retest its initial breakout point.

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