- The price of OP jumped 22% and was followed by a number-one spot in social interaction.
- Traders opened multiple long positions despite mild circulation.
According to Lunar Crush, Optimism [OP] ranked as the highest asset with the most social activity as the market shoved itself into bullish dominion.
The native token of the layer two (L2) protocol had formerly experienced the red side of the decentralized money market. This led to a 6.31% seven-day decline.
Source: LunarCrush
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Now, its position on the social intelligence platform means that the insight from millions of conversations puts Optimism in a positive light.
As a result, OP became one of the best-performing cryptocurrencies in the last 24 hours. At press time, the token was up by 22.02%.
The OP bulls are in pole position
An assessment of the derivatives market showed that traders were taking advantage of the uptick. First, Coinglass data revealed that the futures Open Interest (OI) was unusually high across almost all exchanges.
The OI represents the number of futures contracts held by market participants during a trading day. With double-digit increases in this regard, it means that traders were solidly behind the OP price action.
Source: Coinglass
Further proof of the traders’ interest in the token was shown by the liquidation data. This was because OP hardly recorded liquidations in millions of dollars in recent weeks.
But at the time of writing, the market wipeout closed at $4.73 million on 12 March. Expectedly, shorts experienced most of it.
Meanwhile, the OP network realized profit and loss dropped to -1.55 million on 11 March. However, the jump in price seemed to have helped with recovery. As of this writing, the metric was 4480.
The metric computes the average profit or loss of an asset within a daily timeframe. So, the spike OP holders, on average had made substantial gains and investor capitulation was not a near option.
Source: Santiment
Taking the proceeds of short-term glory may be…
In addition, the OP price rise resulted in a rise in its Market Value to Realized Value (MVRV) Z score. The MVRV Z score is used to evaluate if an asset is undervalued or overvalued. And, this metric considers the difference between market capitalization and realized capitalization.
Realistic or not, here’s OP’s market cap in ETH’s terms
According to Santiment, the MVRV Z score was -21.066 at press time. Compared to the position between January and February, this status placed OP as undervalued.
But since the market has been largely unstable of late, investors might want to tread with caution. Lastly, the OP one-day circulation was down to 4.21 million, implying that the number of tokens transacted did not exchange a high number of wallets.
Source: Santiment
