Optimism [OP] sees a bullish rebound following a price decline on the 7th of October that saw the asset fall roughly 12%. The pullback coincided with declining on-chain performance, Total Value Locked (TVL), and DEX volume.
However, off-chain market activity has driven the recent 11% price surge, as capital inflows and market positioning support the potential for further price gains in the near term.
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OP’s derivatives market points to further gains
The perpetual market position remains strongly bullish, with Open Interest (OI) and the Funding Rate being the key indicators suggesting this.
OI in itself does not necessarily imply a bullish or bearish position in the market, but measures capital in the perpetual market.
In the past 24 hours, Optimism‘s OI surged significantly, reaching a high of roughly $107.82 million following a 17.25% increase as of writing, confirming an inflow of $18.98 million.
In addition to this, there has been a positive Funding Rate reading of 0.0096%. The Funding Rate measures whether long or short positions are dominating the capital positions in the perpetual market.
When positive, it indicates that the bulls are in more control, with more long positions than short positions in the market. These conditions suggest there is a chance that the price will still move higher in the near term.
Whale activity supports OP’s bullish outlook
Capital flows and broader market sentiment have been whale-dominated, with the Whale-Retail Delta confirming this.
The Whale-Retail Delta measures whether whales, investors with large capital, or retail short-term traders have been in control, based on a positive or negative reading.
At press time, the reading was positive at 0.332, but the slight drop on the 9th of October indicates that retail participation is currently playing a role.
Binance whales played a significant role in the activity, with the Whale Long/Short Ratio metric showing a high buy-volume reading of 2.24. On Bybit, however, whales have taken a neutral stance.
Market sentiment remains positive
Sentiment remains bullish, as one would anticipate with an asset rallying. Data from CoinMarketCap shows that market sentiment remains positive, with a reading of 4.68 as of writing.
The sentiment indicator operates between -10 and 10 on the scale. When the scale tilts towards a high positive reading, as it has presently, it confirms that the bulls are in control of the price.
Given the market sentiment, there is a high chance that Optimism crypto‘s price will continue to maintain the bullish level it has sustained over the past couple of trading hours.
Final Summary
- Optimism saw Open Interest rise 17.25% to $107.82 million, reflecting $18.98 million in capital inflows.
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Positive Funding Rates, whale activity, and a CoinGlass sentiment reading of 4.68 support a bullish outlook for OP.
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