Optimism (OP) has formed a bearish head-and-shoulders pattern, indicating a price correction may be on the horizon. The coin is currently trading at 1.12 USD, backed by a recent increase of 5.34%. However, maintaining key support levels is essential as the market sentiment leans negative.

On-chain data shows a 0.87% decrease in network growth, reflecting reduced user activity. Moreover, 90.74% of OP addresses are ‘Out of the Money,’ which raises concerns of increased selling pressure if prices drop. Currently, the MVRV Long/Short Difference stands at -8.75%, indicating a bearish outlook.