Market Meltdown: Is Optimism’s Plunge Towards $0.16 Inevitable?

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Ah, Optimism [OP], that once bright star of the cryptocurrency cosmos, has recently taken a rather disheartening nosedive. According to the ever-so-reliable AMBCrypto, this unfortunate plunge is primarily due to a fundamental shift in its network, as if the very fabric of reality has decided to unravel. Base has boldly announced its departure from the OP stack, opting instead for a more ‘unified’ stack of its own-perhaps in an attempt to secure a more stable future, leaving OP floundering like a fish out of water.

This change, dear reader, has resulted in the loss of a significant portion of transaction activity and revenue for our beleaguered Optimism. One might even say it’s akin to a ship losing its sails in a stormy sea.

With long liquidations sprouting and spot trading volumes experiencing a veritable spike-a flurry of selling, either forced or otherwise-one must wonder if the bulls are merely waving white flags in surrender to the relentless downtrend that has plagued the market for the past five months.

How far south can OP go from here?

The market sentiment, I fear, is less than charitable towards the L2 token. Open Interest (OI) has surged by nearly 60% since Wednesday, February 18th. During this time, Optimism’s token prices have plummeted by a staggering 29.3%. A clear signal that derivatives traders are going short, and the OI increase suggests they’re having quite the party at the expense of poor OP.

With high trading volumes persisting, it appears we are in for a prolonged period of unrelenting selling. Yet, let us not forget: markets are notorious for their unpredictable nature, much like a cat on a hot tin roof.

There may yet be a price bounce, a valiant effort to hunt down the thick clusters of short liquidations hovering overhead like vultures over a weary traveler.

As the rising OI begins to stabilize-like a child finally learning to ride a bicycle-OP has found a temporary refuge in the $0.127-$0.130 zone. How charming! Yet, the altcoin languishes at an all-time low, with no long-term supports below to inspire any bullish reactions. It seems the only way is down, my friends.

The A/D indicator has plunged to new multi-month lows, while the RSI sits in oversold territory, with a reading of 22.5 on the daily timeframe-an alarming sight indeed.

In the days ahead, traders should brace themselves for a potential bounce to the thrilling heights of $0.14-$0.16, where short liquidations lie in wait, eager to spring into action.

Final Summary

  • The demise of the Optimism price was likely set in motion by Base’s migration away from the OP stack.
  • The soaring OI coupled with the rapid price descent firmly cements the market’s seller-dominated status.

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2026-02-21 11:13