OPN just dropped 7.5%, now sitting at 0.241. The volume is 56 million, which is three times the recent average.
Putting this data together, there's only one explanation: someone is unloading.
If it were you, and your coins dropped 7% with volume tripling, what would you do? Two possibilities: either panic sellers are dumping, or the big players are distributing. Panic selling usually comes with decreasing volume, while increasing volume on a drop points to the latter. This distinction determines whether you should cut your losses or buy the dip.
I haven't calculated the market cap for OPN, but a daily turnover of 56 million is quite high for its size, indicating a high turnover rate. High turnover coupled with a significant drop is a classic sign of major players reducing their holdings.
Trading advice: don’t catch falling knives. Avoid buying below 0.24; wait for volume to stabilize. If in the next few days the volume can drop to below 10 million and the price holds above 0.23, then reconsider. Jumping in now is just picking up the bags for those offloading.
That said, OPN's fundamentals are decent; once this selling pressure is digested, the drop could actually present an opportunity. But right now, it's not an opportunity—it's a risk. Understanding the difference between risk and opportunity is what separates the retail traders from the seasoned pros.
Putting this data together, there's only one explanation: someone is unloading.
If it were you, and your coins dropped 7% with volume tripling, what would you do? Two possibilities: either panic sellers are dumping, or the big players are distributing. Panic selling usually comes with decreasing volume, while increasing volume on a drop points to the latter. This distinction determines whether you should cut your losses or buy the dip.
I haven't calculated the market cap for OPN, but a daily turnover of 56 million is quite high for its size, indicating a high turnover rate. High turnover coupled with a significant drop is a classic sign of major players reducing their holdings.
Trading advice: don’t catch falling knives. Avoid buying below 0.24; wait for volume to stabilize. If in the next few days the volume can drop to below 10 million and the price holds above 0.23, then reconsider. Jumping in now is just picking up the bags for those offloading.
That said, OPN's fundamentals are decent; once this selling pressure is digested, the drop could actually present an opportunity. But right now, it's not an opportunity—it's a risk. Understanding the difference between risk and opportunity is what separates the retail traders from the seasoned pros.