Optimism (OP) reaches the opportunity zone: buy now or wait?

Optimism (OP) price is showing signs of recovery, which could turn into a significant rally if supported by investor confidence. However, massive resistance is looming, which could halt its advance before reaching $3.50.

Optimism (OP) is growing

After a notable correction in line with broader market trends, Optimism (OP) stock price has rebounded from the $3.00 support level. This decline translated into a decline in market value, as evidenced by the market value to realized value ratio (MVRV).

This ratio, which gauges investors' profits or losses, currently indicates that the 30-day MVRV to Market Value (MVRV) ratio is -20% for Optimism stock, indicating recent losses that could lead investors to accumulate actions.

Historical data suggests that PO recovery often begins in the -9% to -20% MVRV range, which is considered the opportunity zone. During these periods, investors are more likely to hold on to their assets, creating an environment conducive to potential upside.

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While OP aims to reclaim $3.50 as a support level, the recovery path is supported by significant potential profits.

The Global In/Out of the Money (GIOM) Index shows that Optimism's nearly $360 million, valued between $2.88 and $3.44, is poised to turn a profit as the price increases.

OP Price Prediction: Resistance

The bullish path towards reclaiming the $3.50 support is promising, supported by the prospect of recent investments turning into profits. This investor optimism should reduce selling pressure, thus contributing to the asset's rebound.

However, the path is not without obstacles. There is a dense resistance zone above the $3.44 level, where we are waiting for about 293 million OPs, worth over $925 million purchased between $3.44 and $4.65 . Overcoming this obstacle will require stronger bullish momentum.

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If Optimism (OP) encounters difficulty breaking this resistance, the potential for profit-taking could trigger a pullback, which could push the price below the $3.22 support level and challenge the optimistic outlook.