Optimism [OP] will unlock tokens worth $30 million soon, which will provide a major boost to its ecosystem. But historically, token unlocks have always been accompanied by price drops. Will it be the case this time as well?
Optimism unlocked new tokens
On 30 September, OP will unlock 3% of its locked supply, which will increase its circulating supply to nearly 8 million.
The news of this price drop brought about a 7% decline in OP’s value, which was trading at $1.26 with a market cap of over $1 billion at press time. Moreover, OP’s social metrics also witnessed a plummet.
What did OP’s metrics indicate?
As per LunarCrush, the token’s altrank dropped substantially, which was a bearish signal. More such signals were revealed upon checking the blockchain’s metrics at press time.
For instance, the token’s MVRV ratio dropped substantially over the last week, alongside its 1-week price. The token’s 1-week price volatility also took a southward turn, which was in the sellers’ favor.
In addition to the above metrics, OP’s MACD displayed a bearish crossover as well, further increasing the chances of a future southbound price movement. Additionally, the Money Flow Index (MFI) also declined.
Optimism’s Chaikin Money Flow (CMF) was also resting near the neutral mark, which suggested that the possibility of a price downtrend was high at the time of writing.
But it was not all bad news, as OP’s Relative Strength Index (RSI) registered an uptick – bullish signal by all counts. However, it was not enough to turn the tides in OP’s favor, at least at press time.