After facing sustained selling pressure through late September, the asset is once again drawing trader attention thanks to its rebound above a critical psychological level. While short-term sentiment leans bullish, technical indicators suggest that caution remains warranted as momentum shows mixed signals.

Short-Term Recovery Supported by Open Interest

The recent 1-hour chart reveals a strong rebound after the price dipped as low as $0.63 earlier in the week. Buyers stepped in aggressively at this level, driving the token higher in a clear series of higher lows and higher highs.

At press time, OP has reclaimed the $0.70 threshold, a key psychological level that may now flip into support if demand continues to hold.

Source: Open Interest

Open interest data provides additional context for this rebound. Aggregate open interest (OI) has stabilized around $124.4 million following a volatile period. This steadiness signals that traders are once again committing capital to the asset positions, suggesting confidence is returning to the market.

Importantly, the climb in price was not accompanied by a major spike in OI, which implies the move was supported by spot buying rather than aggressive leveraged speculation. This reduces the immediate risk of cascading liquidations and offers a healthier setup for sustained upside.

Metrics Highlight Uptick in Market Participation

According to recent data, Optimism is trading at $0.72, marking a 7.22% increase in the last 24 hours. The token’s market capitalization stands at $1.28 billion, with daily trading volume exceeding $165 million, reflecting renewed participation from both retail and institutional players.

Source: BraveNewCoin

With a circulating supply of 1.77 billion tokens, the token ranks among the top 110 crypto assets by market capitalization. Its rebound from last week’s lows highlights resilience, particularly at a time when broader market sentiment has been mixed.

Still, the asset remains well below its 2025 highs, underlining the uphill challenge for bulls to fully restore momentum.

Technical Indicators Signal Mixed Momentum

A closer look at technical indicators suggests the recovery remains tentative. On the daily chart, OP is trading around $0.7162, reflecting a modest daily gain of 1.59%.

However, the Chaikin Money Flow (CMF) reading sits at -0.10, signaling that outflows are still outweighing inflows. This negative reading points to distribution rather than strong accumulation, raising doubts about the sustainability of the rebound.

Source: TradingView

Momentum oscillators echo this cautious tone. The MACD line sits at -0.0167, below the signal line at -0.0135, with the histogram printing a negative -0.0032.

This alignment remains bearish, suggesting that downside momentum has not been fully neutralized despite the price uptick. While a bullish crossover could shift sentiment, for now, traders should remain wary of potential reversals if buying pressure fades.

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Filed under: Bitcoin - @ October 2, 2025 8:15 pm