Optimism spikes 5% ahead of upcoming token unlock

Optimism (OP) is gearing up for its October 30 token unlock, which will release an amount of tokens worth $32 million, matching the value of the previous release. OP price has seen a 5% increase ahead of the event, which will impact 2.74% of the circulating supply of the token.

OP token unlock by month-end

Optimism (OP), a Layer 2 rollup network on Ethereum, is set for another token unlock on October 30. After unlocking 14.16 million OP token, worth around $32 million on September 30, the next unlock will be of the same value. Ahead of the event, the token spiked 5% on Tuesday, helped by the broader bullish sentiment in the crypto market following Bitcoin’s price increase.

The unlock dominates 2.74% of the Optimism circulating supply, making it a crucial event that could impact the price. Based on data by Token Unlocks, 18.04% of OP tokens have already been unlocked, accounting for 774.78 million OP. Meanwhile, 24.75% of the total supply (1.06 billion OP), remains locked.

According to information with the platform, the current token allocation stands at 23.6% for core contributors, 23.6% for airdrop recipients, and 21.1% for investors.

Optimism price remains positive

On Tuesday, the price of Optimism (OP) was trading in the 24-hour range of $1.28 and $1.43, with a trading volume of 12.97 million OP. CoinGecko analysis finds 5% price improvement on the daily time frame and an 11% rise in the past seven days.

The OP/USDT chart for the last month indicates that the last unlock moved the Relative Strength Index (RSI) to the overbought zone on October 1 and October 2 before dipping below. On October 9, the 14-day RSI was in a prolonged oversold region. The RSI on Tuesday was above 70, a level considered overbought, before hovering back to the normal range. Meanwhile, the moving averages currently hint at a buy for OP as per TradingView data.

The RSI territory implied buying pressure over the next two day period after the unlock. The price movement following the next unlock on October 30, depends on the market perception of the OP valuation. The current buying suggests some market optimism for OP considering Bitcoin has also briefly surpassed the $34,000 level on Tuesday.