The Great Takeaways
Why’s Optimism’s price down today?
The price of Optimism took a nosedive, thanks to the mighty bears, who have been flexing their muscles like a well-fed cat in a sunbeam 🐻❄️. Liquidity withdrawal? More like liquidity vacation. TVL? A ghost town. 🕯️
Will OP bears retain dominance?
The bulls are eyeing the throne, but they’re more interested in a nap than a battle 🐂. They’ve shown interest, but not enough to make the bears sweat. The bears? They’re lounging like they own the place. 🐻❄️
OP has been emulating the broader crypto weakness, appearing among the top 3 by losses for the top 100 cryptos by market cap. A true champion of the downtrodden 🦊.
The price of OP declined by 16% at the time of writing, extending the losses since the 20th of November to 27%-a journey that would make a rollercoaster jealous 🎢.
Will OP’s bear dominance prevail?
The charts clearly showed bear dominance as Optimism [OP] reached new lows, dropping under $0.30. A sad day for optimism, indeed 🌤️.
The drop was caused by capital rotation to Bitcoin [BTC], which fell below $85,000; thus, traders rushed to buy it at a discount. A classic case of “follow the money” 🧾.
Additionally, privacy coins that surged while the market declined drained capital from OP, which has consistently decreased throughout this week. A real “siphon of despair” 🧽.
Sellers were gaining momentum, as the Bull Bear Power (BBP) indicator showed with its increasing bars. The Bollinger Bands expanded due to the high volatility during the price drop. It’s like a rollercoaster with no brakes 🎢.
The drop comes following a period of sideways consolidation movement characterized by lower highs and lows. A dance of despair, if you will 🕺.
Notably, the 4-hour timeframe formed a base by printing a bullish Doji candle. This suggested the possibility of bulls retaliating, a common occurrence following new lows. Like a phoenix, but with less fire 🦅.
In case altcoin weakness stays alongside that of BTC, OP is likely to suffer more if bulls do not claim control. Bears remained strong even though bulls were reacting after OP wicked below $0.30. A tale of two markets 🐻❄️ vs 🐂.
OP price decline was not driven by technical structure and capital rotation alone; on-chain activity was also in the same trajectory. A perfect storm of doom and gloom ☁️.
Transactions, liquidity, and TVL decline
The number of monthly transactions was at 57.4 million previously, but the projections indicated that the expected output at the end of this month is way below. A numbers game where the numbers are losing 🎲.
At this pace, the end was anticipated to be at 55.6 million, with the current count at 39.3 million. A drop so steep, it could make a mountain look like a hill 🏔️.
In the meantime, the Total Value Locked (TVL) declined by 4% in the past 24 hours, reaching $501.4 million. A vault emptied faster than a magician’s hat 🎩.
The chain’s stablecoin market cap experienced a drop of 2.76% over the past week, suggesting a withdrawal of liquidity. All these led to the daily decline. A liquidity exodus, if you will 🚪.
Final take
Optimism was dropping hard in the past week as bulls showed signs of return, though they were weak. OP could reverse only if price reclaims $0.31 and goes ahead to flip $0.40. A tall order, but not impossible 🕰️.
Importantly, a series of higher lows and highs need to be observed to ascertain this shift in market structure. Otherwise, bears remain in control, and more drops could come. The bears are the undisputed kings of the crypto kingdom 🦁.
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2025-11-23 00:29