OP Price Set Up for Potential Squeeze as Smart Money Goes Long
Optimism's (OP) price has been stuck at $0.09 for a while, but the derivatives book tells a different story. Smart money is running a 66% long position at these prices, which suggests that they're preparing for a potential squeeze.
The spot price of OP has shed most of its cycle peak value, and daily volume on Binance spot is barely $1.9 million, indicating thin liquidity. A coordinated move in either direction will be violent and fast.
Technical indicators are not bullish, but neither are they screaming sell. Momentum has flatlined at mid-range, and the Stochastic oscillator suggests short-term price action has actually been firming.
The Bollinger Band picture is telling, with all three bands compressed to the same price level. This signals maximum indecision before maximum movement, which historically resolves in a 15-30% expansion move.