Optimism’s price is on the verge of a potential recovery as it follows bullish cues from the broader market. Currently trading at $1.7, investors are showing optimism for a price rise, as seen through the Market Value to Realized Value (MVRV) ratio. With a 30-day MVRV at 10%, indicating potential buying opportunities, investors are holding onto their holdings, with less than 5% in profit. This HODLing behavior is seen as a bullish sign for Optimism’s future.
Historically, an MVRV ratio between -10% and -20% has often preceded recoveries and rallies for altcoins like Optimism. With investors showing reluctance to sell, the chances of a recovery for Optimism are high. Reclaiming $2 as a support floor is crucial for the altcoin, with a bounce back from $1.6 already in progress. However, breaching $1.8 is necessary for Optimism to reach its target of $2.0 as a support floor. The current rise in price is supported by investors’ bullishness, but the altcoin’s future remains uncertain until $2.0 is secured.
If Optimism fails to breach $1.8 and reclaim $2.0 as a support floor, the price could remain consolidated below $1.8 or even face further declines. Any decline below $2.0 would invalidate the bullish thesis and extend the losses for Optimism. Therefore, it is essential for the altcoin to secure $2.0 as a support floor to ensure a sustained recovery in the future.
In conclusion, optimism among investors could potentially help trigger a rise in Optimism’s price, with the altcoin aiming to reclaim $2.0 as a support floor. Investors’ reluctance to sell and the historical MVRV ratio suggest a potential recovery for Optimism. However, breaching $1.8 and securing $2.0 as a support floor is crucial for the altcoin’s sustained recovery. As market conditions are subject to change, it is important for investors to conduct their own research and seek professional advice before making any financial decisions related to Optimism or other cryptocurrencies.
