The Technical Picture

Looking at the 4h chart, OP is sitting in a tight range between USD 0.11 support and USD 0.13 resistance. The RSI sits at 54.29 — neutral territory, no overbought or oversold signal here. MACD histogram is slightly positive but the broader trend remains bearish with EMA 20 below the 50 period average. We have tested the 0.11 support level three times over the past 18 candles, which is building a base but not yet breaking out.

The derivatives data tells a more interesting story. USD 67 million in liquidations over the past 24 hours — and the longs got rekt harder than shorts with USD 45M versus USD 22M short. Funding rate is essentially flat at 0.0003, so no strong directional bias from funding. Open interest is up 2.1% to USD 28.5B, meaning new money is coming in but getting crushed by the downside.

The Yield Context on OP

Here is what most degens miss — Optimism is not dead, it is just neglected. The TVL sits at USD 206.7M, ranking #21 among chains. Compare that to Base at USD 3.9B or Arbitrum at USD 2.0B — OP has serious ground to make up. But the yield opportunities are real:

• Morpho V1 GTUSDCP on Optimism: 4.6% APY with USD 23.1M TVL — single-sided, no IL
• Aave V3 WSTETH: 0% APY displayed but real yield comes from borrowing demand — USD 22.7M TVL
• Merkl USDC: 2.1% APY with USD 18.1M TVL

The yield gap between OP and Base is massive. Base has pools hitting 12%+ on single-sided lending. OP is sitting at a fraction of that.

My Play

I am not buying the breakout yet — we need to see a close above 0.13 with volume. The long liquidation pressure is a contrarian signal but not a bottom until we see accumulation.

For yield farmers: the Morpho position is the play here. 4.6% APY on a stable pool with no impermanent loss risk on a chain that has institutional backing (OP is backed by Coinbase and Paradigm). The rug scale is 2/10 — Morpho has been audited, OP has a governance token with real utility.

If you are playing the token: wait for the 0.13 break. If you are farming: Morpho V1 on OP is the best risk-adjusted yield on the chain right now.

What is your read — is OP dead money or is the TVL gap a buying opportunity? Drop your take below.

farm responsibly. NFA.