Optimism [OP], one of Ethereum’s leading Layer 2 networks, recorded a sudden 26% spike in daily active addresses over the past 24 hours, signaling renewed interest. Transactions on the network also rose by 7%, surpassing 900,000 daily transactions—a level it has maintained for several weeks. Despite these seemingly bullish figures, caution remains warranted as broader on-chain and technical signals point toward possible weakness.

At press time, OP was trading around $0.604, holding just above a critical support range. However, with exchange inflows rising and long trader confidence dropping, investors and traders may need to prepare for increased volatility ahead.

Activity Spikes Despite Address Drop

Optimism’s network activity presents a conflicting narrative. On one hand, daily active addresses saw a sharp increase, indicating short-term engagement. On the other hand, total address participation has halved—from 170,000 down to 80,000 in recent weeks.

Interestingly, despite this steep drop in address count, transaction volume has remained steady, hovering above 900K per day. This suggests concentrated user activity among fewer addresses rather than broad-based network growth. In simple terms, the network is still being used, but by a smaller, more active cohort.

This discrepancy raises concerns about long-term sustainability, especially as the ecosystem battles to regain traction in a highly competitive L2 landscape.

Exchange Inflows Point to Mounting Sell Pressure

A critical factor that could shape OP’s short-term price action is the volume of tokens moving to exchanges. Over the past 24 hours, Optimism recorded more than 662,000 OP in net inflows, with over 1.6 million OP transferred to exchanges in the past 30 days.

Typically, rising exchange inflows are interpreted as a bearish signal, implying that holders may be preparing to sell. This behavior aligns with declining user participation and weak technical momentum.

If this trend continues, OP could face renewed selling pressure, especially if it fails to hold above its key support zone.

$0.58–$0.60: A Critical Support Range

OP’s technical chart reveals a long-standing demand zone between $0.58 and $0.60. The token has bounced from this area multiple times over recent months, making it a major battleground between bulls and bears.

However, momentum indicators such as the MACD remain flat, showing no clear dominance from either side. Should OP break below this zone with increased volume, a sharp decline could follow—particularly if driven by ongoing exchange outflows.

Conversely, successfully defending this range could trigger a short-term relief rally, although sustained upside remains uncertain without a broader shift in sentiment or user adoption.

Binance Traders Are Bullish – But Confidence Is Fading

Data from Coinglass reveals that 69.47% of Binance traders remain long on OP/USDT, reflecting a still-bullish sentiment. However, this figure is down from over 80% earlier this month, suggesting waning confidence even among OP’s strongest supporters.

The reduced long bias, coupled with flat technical indicators, illustrates how bulls are growing more cautious—even as the price trades near a historically strong support level.

Without fresh catalysts or positive momentum, this softening sentiment may not be enough to fuel a sustained recovery.

Short Liquidations Signal Bear Fatigue

Interestingly, OP has seen a surge in short liquidations in recent sessions. Data shows $148,680 in short positions wiped out versus just $26,290 in long liquidations. This suggests that bearish traders may be overextended, leaving them vulnerable to short squeezes.

If bulls manage to hold the $0.60 zone and trigger further short covering, the price could experience a brief rally. However, this move would likely be short-lived unless backed by real demand growth and improving on-chain fundamentals.

Final Take: Momentum Is Weak, Despite User Spike

Optimism’s recent uptick in user activity offers a glimmer of hope for bulls, but the broader setup still leans bearish. Persistent exchange inflows, flat momentum indicators, and declining long trader conviction paint a fragile picture.

Unless daily engagement translates into consistent user growth and strong buying support, OP’s current bounce may be temporary.

For now, the $0.60 support zone remains a make-or-break level. Bulls must hold it—and quickly find momentum—to avoid a deeper retracement in the weeks ahead.