Over the past few days, Optimism** has been showing strong momentum, becoming one of the biggest gainers in the market today**. Since recently, the native token OP of Optimism has taken its place among the top 30 cryptocurrencies by market capitalization.
However, with a sell signal appearing on the chart, the trend of optimism may soon turn bearish.
In a recent article on Platform X, cryptocurrency analyst Ali Martinez sounded the sell alarm for OP tokens. According to popular cryptocurrency experts, optimism** may be in the sweet spot for investors to cash out their profits.
The reasoning behind this is around the TD (Tom Demark) sequential metric. According to Martinez's analysis, the indicator is currently flashing a sell signal on the 12-hour** chart of Optimism.
The crypto analyst highlighted that the TD serial indicator gave a signal before the big spike in Optimism in early December. This further increases the likelihood of a bearish shift after the indicator issues a sell alert.
Martinez advises investors to consider taking profits immediately, as the OP is likely to reflect the size of the initial bullishness. This ** comes during the exciting positive run of the OP, which puts the bullish trajectory of the altcoin in jeopardy.
As of this writing, optimism is 3$37, reflecting nearly 34% in the last 24 hours***. According to Coingecko, the value of cryptocurrencies has soared by more than 55% over the past week.
OP Coin is expected to be one of the 30 largest cryptocurrencies in the industry by the end of the year, with a market cap of more than $3 billion recently. The positive performance of the token in such a short period of time only highlights the acceleration of the network's growth rate.
According to the latest data from IntotheBlock, the Optimism network has a balance of over 5.9 million addresses. That's an increase of nearly 400% from 1.2 million in January 2023.
What a year it has been for @optimism!The network currently has a balance of over 5.9 million addresses, up 391% from 1.2 million in January!This growth in size and scale indicates an increase in confidence, adoption, and use of the Optimism network. If this positive trend is taken as a basis, then it is possible that optimism will not be long-term – if the current bearish trend does materialize.IntotheBlock (@intotheblock) December 21, 2023.
Featured** from iStock and chart from Tradin**IEW
Disclaimer: This article is for educational purposes only. It does not represent the opinion of investment, and investment is naturally risky. It is recommended that you do your own research before making any investment decisions. Use of the information provided in this ** is entirely at your own risk.