"OP's Bearish Trend: Head-and-Shoulders Pattern Predicts Steep Decline"

Optimism (OP) has been experiencing a notable bearish trend, with recent technical analysis suggesting potential declines below critical support levels. Market sentiment around OP hints at broader concerns regarding its price stability and investor confidence.

According to experts at COINOTAG, the head-and-shoulders pattern observed in OP trading may lead the cryptocurrency towards price levels not seen since early 2023. The left shoulder formed in early 2023 when OP peaked at around $3.70-$3.80. The head followed in late 2023 to early 2024, with OP reaching a high of $4.90-$5.00. The right shoulder developed in mid-2024, but the price failed to surpass $3.00, indicating weakening bullish momentum.

The critical neckline at $1.40 served as strong support before breaking down. Following this breakdown, OP dropped sharply to its current price, confirming the bearish trend. If this pattern fully plays out, OP could slide further, with analysts pointing to $0.70, $0.50, $0.38, and even $0.28-$0.30 as potential support levels. Analysts warned that if OP fails to hold above $0.70, we could see a rapid decline toward $0.30, or even lower.

Address data from IntoTheBlock shows mixed signals regarding user engagement. The number of New Addresses (NA) increased by 27.28%, indicating some new interest in OP. However, the number of Active Addresses (AA) declined by 19.56%, suggesting that fewer users are engaging in transactions. At the same time, Zero Balance Addresses (ZBA) dropped by 18.88%, meaning fewer wallets are being emptied or abandoned. These statistics reflect a concerning trend, as a rise in new addresses does not necessarily translate to long-term holders or increased market participation.

Transaction data shows a decline in large trades, hinting at reduced participation from institutional investors or large holders. Over the past three months, the number of large transactions fluctuated between 500 and 1,500 per day. On the 8th of February 2025, transactions peaked at 942, while the 7-day