Optimism is one of the altcoins to witness a sharp decline amid a broader dip in the cryptocurrency market.
OP price fell more than 16% to test lowest levels since dipping to $1.17 in August.
Why is Optimism’s price down today?
Data shows the global crypto market cap lost nearly 8% in 24 hours, with most tokens in red as risk assets experience sharp volatility.
The total liquidations stood at over $860 million, with more than $795 million rekt in the past 12 hours to the time of writing.
Notably, the market correction came as investors reacted to artificial intelligence-related news around Chinese AI firm DeepSeek.
The firm, emerging as a challenger to OpenAI and other American companies in the sector, allegedly built and trained its open-source AI assistant on a budget tenfold lower compared to OpenAI.
Investor reaction triggered a cascade of negative sentiment with Nvidia shares falling more than 5%.
Crypto, which has received significant buoyancy on the back of huge gains across AI, also felt the pain as prices dragged down.
On Monday, Jan. 27, the crypto market saw Bitcoin price fall to below $98k and altcoins tanked hard.
OP price fell 16% to lows of $1.34, having traded above $1.64 earlier in the day.
Coinglass data showed open interest was down 9% as more than $4 million was liquidated in 24 hours.
Most of these liquidations are for longs as only $41k of the wiped-out positions were shorts.
Will OP price fall further?
The OP token’s dip to $1.34 saw it reach its lowest level since dumping to around $1.17 in August 2024.
However, the altcoin has struggled in recent weeks and faced rejection at $1.80 twice in the past week.
Declines over the past 24 hours extend the pullback and see Optimism price hover at the key support zone near $1.30.
Notably, this correction phase may gather fresh momentum if bears take charge amid a key week for the network.
Specifically, Optimism is poised for a major token unlock this week.
According to Tokenomist, OP is among this week’s top cliff unlock tokens. Sui will see over 64 million SUI worth $256 million and accounting for 2.13% of circulating supply, unlocked.
Optimism has the second biggest scheduled cliff unlock, with over 31 million OP worth more than $45 million entering circulation.
The impact could be fresh downturn pressure amid other market dynamics. In this case, the $1.30 and $1.20 are critical price levels for OP.
For bulls, the main target will be breaking above the robust resistance at $1.80.
The post Optimism price forecast: OP drops 16% amid 31 million token unlock pressure appeared first on Invezz
