Crypto analytics firm Santiment says an Ethereum (ETH) scaling altcoin is flashing a bullish signal, even after soaring in price since the start of the year.
Santiment says that the social dominance indicator is signaling bullishness for Optimism (OP) protocol, a layer-2 scaling tool for the Ethereum blockchain.
The native token of the Optimism protocol OP is up more than 244% year-to-date, from $0.92 at the start of the year to $3.17 at time of writing.
Optimism surged in recent days after Coinbase (COIN) announced it was building the layer-2 scaling solution Base on the blockchain.
“Optimism token nearly broke its three-week standing All Time High following Coinbase’s launch of its OP-based launch of Base. The crowd is in discovery mode of OP, and our latest community insight reveals what social hype could do to prices from here.”
Santiment also looks at Bitcoin (BTC) and predicts the king crypto could rally past the $25,000 price level if there is an uptick in whale addresses.
“The amount of shark and whale Bitcoin addresses are staying flat as the $23,000 to $25,000 price range continues. If the 1,000-10,000 BTC addresses begin to rise the way the 10-100 and 100-1,000 BTC addresses have in the past three months, it would be a breakout sign.”
However, Santiment warns crypto investors to remain cautious as Bitcoin is showing some initial signs of being overbought.
“Crypto returns are beginning to show signs of at short-term recovery the past eight hours. But cautiousness is advised with average trading returns positive in 2023. Markets move up with the highest probability when traders’ assets are underwater. Currently, they’re mildly over.”
Bitcoin is trading for $23,187 at time of writing.
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Featured Image: Shutterstock/sweet kiwi/Natalia Siiatovskaia