OP continues to grow 10% despite bearish onchain metrics

Optimism, a low-cost Ethereum Layer 2, has delivered nearly 10% daily and 65% weekly returns to holders. The OP price is $3.49 at the time of writing, as Layer 2 tokens increase despite bearish onchain metrics.

Onchain metrics signal bearishness

Optimism’s large wallet transactions valued at $100,000 or more increased between December 3 and 23, as seen in the chart below. The spike in whale transactions coincides with a spike in Network Realized Profit/Loss on the network. This shows that large wallet investors are taking profits as the OP price increases.

Profit taking often precedes an asset’s correction, and OP prices can fall as whales realize their profits in large numbers. 

The 30-day Market Value to Real Value (MVRV) ratio has increased to 66.17% as seen in the Santiment chart below. Typically, every time MVRV figures reach a local peak there is a corresponding price correction, and the current level is the highest in the past six months.

It’s likely that OP is ready for a short-term adjustment.

Another important onchain metric, Network Growth shows bearish divergence in OP. Despite the OP price increase, Network Growth did not increase and remained below average throughout December. 

 

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