The post Optimism Coin Positions for a Potential Rebound Toward $0.59 Resistance Zone appeared on BitcoinEthereumNews.com.

Optimism is attempting to stabilize following a steep market correction that erased nearly half of its value within a short period. The sharp decline was accompanied by an intense wave of liquidations, but recent consolidation suggests that speculative excess may have been flushed out, leaving room for more organic price discovery. Market data now points to cautiousness on the asset as the token defends its lower range amid subdued volatility and reduced leverage exposure. Open Interest Collapse Marks End of Leverage Cycle On the 4-hour chart, OP has maintained a steady downtrend, printing consecutive lower highs and lows since mid-September. After holding near $0.70, the token faced a sharp breakdown, tumbling below $0.40 in what appeared to be a capitulation phase. Heavy selling volume during the crash indicated widespread liquidation events, as leveraged traders were forced to exit positions rapidly. Source: Open Interest Open Interest data confirms this deleveraging process, dropping from over 150 million to approximately 52 million. The steep contraction in OI illustrates that speculative positions were aggressively cleared, resetting market leverage to healthier levels. Typically, such declines in open interest signal that a majority of short-term speculators have exited, paving the way for more sustainable movement. At present, both price and OI remain relatively stable, suggesting that the market is in a cooling phase. If buying pressure increases alongside a measured rise in open interest, it could imply a return of controlled speculation and an early phase of accumulation. However, a failure to hold support between $0.42 and $0.45 could expose the coin to further downside pressure toward $0.35, maintaining the bearish mid-term outlook. Market Data Shows Stabilizing Fundamentals Additionally, according to BraveNewCoin, Optimism trades at $0.42, marking a 0.48% increase over the past 24 hours, with a market capitalization of $755.56 million and daily volume of…

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Filed under: News - @ October 19, 2025 8:25 pm