Optimism price plunged to a 14-day low of $2.90 on Jan. 8, marking a 30% decline from the $4.18 all-time high recorded on Dec. 27.
The rapid price decline came on the back of $2.45 million LONG Optimism (OP) futures contracts liquidations within a frenetic 24-hours. Derivative market data trends provide key insights into how dramatic shifts in Optimism futures trading could impact OP spot price action in the days ahead.
Why is Optimism’s price down?
Optimism price reached an all-time high of $4.18 on Dec. 27 as Ethereum Layer-2 scaling protocols recorded groundbreaking network-usage milestones. But at the turn of the year, the altcoin market rally slowed, and OP holders began to book profits.
Remarkably, OP price tumbled below the $3 mark in the early hours of Jan. 8, triggering millions of losses in the derivatives markets. The latest OP price downswing brings it to a 30% decline from the $4.18 all-time high recorded on Dec. 27.
Optimism’s recent price downtrend appears to have caught bullish futures traders unaware. Indicatively, the price downswing on Monday was heralded by widespread liquidations in the derivative markets. The Coinglass’ Liquidation Heatmap chart shows that OP’s negative price action on Jan. 8 wiped out over $2.8 million of futures contracts.
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Author: Ibrahim Ajibade
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