Optimism onchain activity seems to continue building a stronger and stronger divergence with price. Active addresses:
Something might be brewing with Optimism.
Especially taking into account a strong increase of stablecoin onchain activity on Optimism blockchain:
«Cash is the king» — this is the narrative we might be looking for at the bottom.
Like a total disbelief in crypto and stocks.
How could we measure it?
This is how it looks like currently:
We can see this narrative is getting stronger.
Perhaps making us closer and closer to the bottom.
Would you like to check how this played out on a previous cycle?
One of our favourite sentiment indicators is "Buy the dip" mentions.
Ideally this sort of calls happens quite often in the beginning of downtrend, slowly fading to market bottom. This could be explained by increasing crowd disbelief. Less confidence, less patience. At the point of maximal disbelief, a reversal might happen.
What are we seeing now?
- Amount of 'Buy the dip' calls is declining:
2. The same time it's dominance is increasing:
So, how could we read it?
- Overall social activity on crypto market is declining quite fast.
- "Buy the dip" callers becoming more and more dominative in dissolving crowd.
The day they are gone could possibly indicate a bottom. Not there yet.
After being hammered down for a couple weeks by the news about an order for Do Kwon's arrest, and the Interpol involvement, LUNC finally got some positive news:
The price reacted promptly, leaving all the shorters in the dust. Trading volume and social volume behaved in a similar fashion:
Will anyone dare to step in front of this locomotive (maybe the legendary GCR himself)? And will Binance's involvement be enough to push LUNC to a new ATH? One way to find out.