Why is the price of OP token decreasing despite Optimism’s buyback permit?
Optimism (OP) underperformed as risk sentiment hit high-beta altcoins hard. The return plan is delayed, small and has no immediate supply reduction. A technical breakdown below key averages triggered a strong sell-side impulse.
Optimism (OP) token is falling even after token holders approved the long-awaited return plan.
At first glance, this seems counterintuitive, as buybacks are often seen as bullish for token prices.
However, the market reaction shows the difference between long-term fundamentals and short-term trading reality.
OP is currently trading at $0.27, down roughly 8.8% in the last 24 hours.
This decline is sharper than the 5.26% decline experienced by the broader crypto market over the same period.
Underperformance indicates that the OP is facing more pressure than simple market noise.
Market-wide risk aversion is dragging down high-beta tokens.
The crypto market is currently in a clear crisis phase.
Investors are shifting away from speculative assets and into traditional safe havens.
Gold hit a record high, reflecting heightened global uncertainty.
At the same time, Bitcoin slipped to about $85,000.
When Bitcoin weakens during a crisis, altcoins typically fall hard.
OP is considered a high-beta value, which means it highlights broad market movements.
As a result, even moderate market stress translates into excessive losses for the OP.
The fear and greed index sits at 38, firmly in “fear” territory.
This indicates that traders are prioritizing capital preservation over growth opportunities.
In such situations, narratives such as management prevail and prospective acquisitions struggle to gain traction.
Instead, liquidity dries up and sellers dominate price action.
This macro sets the benchmark for OP performance.
The buyback approval did not meet short-term market expectations.
Although Optim Token owners have approved the proposal to allocate 50% of Superchain's series revenue to OP purchases, the market has reacted more negatively than positively, and the main reason is time.
The purchases are scheduled to begin in February, not immediately. For short-term traders, the delayed execution reduces the expected effect.
The scale of the program also disappointed investors. Annual purchases are estimated at $8 million.
That figure represents roughly 1.5% of OP's current market capitalization.
Such a modest allocation is impossible to compensate for the continuous sales pressure. In addition, the plan does not include token burning.
Repurchased tokens will be sent to the treasury, future supply decisions are uncertain.
At the same time, token openings will continue to increase market availability. This inconsistency undermines the comeback narrative in the near future.
Instead of acting as a price floor, advertising became “selling the news.”
Summary: Long-term hope, short-term pressure
The decline in OP prices reflects a combination of macro, narrative and technical factors.
Market-wide risk aversion has dampened demand for speculative altcoins.
The recovery plan, while structurally positive, will not have an immediate impact.
The token recently broke below its 7-day and 30-day simple moving averages, prompting algorithmic and momentum-based selling.
The Moving Average Convergence Divergence (MACD) indicator has also turned negative, accelerating the downward trend.
The Relative Strength Index (RSI) remains around 44, suggesting that the OP is not yet oversold, meaning there is little technical support from bargain hunters.
These forces explain why OPEC is failing despite positive governance news.
In the long term, tying token value to Superchain revenue is a meaningful change.
But short-term traders are more focused on survival than future alignment.
According to analysts, the next major test is whether the OP can hold the $0.2528 support level.
Upcoming macro data, particularly US inflation measures, may determine the next move.
But until market sentiment improves, OP may remain under pressure despite fundamental improvement.
