{"id":6163,"date":"2026-01-29T18:25:46","date_gmt":"2026-01-29T18:25:46","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6163"},"modified":"2026-01-29T18:25:46","modified_gmt":"2026-01-29T18:25:46","slug":"heres-why-op-token-price-is-falling-despite-optimism-buyback-approval","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6163","title":{"rendered":"Here’s why OP token price is falling despite Optimism buyback approval"},"content":{"rendered":"
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Optimism (OP) underperformed as risk-off sentiment hit high-beta altcoins hardest.<\/li>\n
The buyback plan is delayed, small, and lacks immediate supply reduction.<\/li>\n
Technical breakdown below key averages has triggered strong sell-side momentum.<\/li>\n<\/ul>\n
The Optimism (OP) token is falling even after token holders approved a long-awaited buyback plan.<\/p>\n
At first glance, this seems counterintuitive, since buybacks are often seen as bullish for token prices.<\/p>\n
However, the market reaction highlights the gap between long-term fundamentals and short-term trading reality.<\/p>\n
OP is currently trading around $0.27, down roughly 8.8% in the past 24 hours.<\/p>\n
This decline is sharper than the broader crypto market\u2019s 5.26% drop over the same period.<\/p>\n
The underperformance signals that OP is facing pressures beyond simple market noise.<\/p>\n
Market-wide risk aversion is dragging down high-beta tokens<\/h2>\n
The crypto market is currently in a clear risk-off phase.<\/p>\n
Investors are rotating away from speculative assets and toward traditional safe havens.<\/p>\n
Gold has surged to record highs, reflecting heightened global uncertainty.<\/p>\n
At the same time, Bitcoin has slid to around $85,000.<\/p>\n
When Bitcoin weakens during risk-off periods, altcoins typically fall harder.<\/p>\n
OP is considered a high-beta asset, meaning it magnifies broader market moves.<\/p>\n
As a result, even modest market stress translates into outsized losses for OP.<\/p>\n
The Fear and Greed Index sits at 38, firmly in \u201cFear\u201d territory.<\/p>\n
This indicates traders are prioritising capital preservation over growth opportunities.<\/p>\n
In such conditions, narratives like governance wins and future buybacks struggle to gain traction.<\/p>\n
Instead, liquidity dries up and sellers dominate price action.<\/p>\n
This macro backdrop sets the stage for OP\u2019s underperformance.<\/p>\n
The buyback approval didn\u2019t meet short-term market expectations<\/h2>\n
While Optimism token holders have approved a proposal to allocate 50% of Superchain sequencer revenue to OP buybacks, the market has reacted negatively rather than positively, and the main reason is timing.<\/p>\n
The buybacks are scheduled to begin in February, not immediately. For short-term traders, delayed execution reduces the perceived impact.<\/p>\n
The scale of the program also disappointed investors. Annual buybacks are estimated at around $8 million.<\/p>\n
That figure represents roughly 1.5% of OP\u2019s current market capitalisation.<\/p>\n
Such a modest allocation is unlikely to offset sustained selling pressure. Additionally, the plan does not include token burns.<\/p>\n
Repurchased tokens are sent to the treasury, leaving future supply decisions uncertain.<\/p>\n
At the same time, token unlocks continue to add supply to the market. This imbalance weakens the buyback narrative in the near term.<\/p>\n
Rather than acting as a price floor, the announcement became a \u201csell the news\u201d event.<\/p>\n
OP\u2019s price decline reflects a convergence of macro, narrative, and technical factors.<\/p>\n
Market-wide risk aversion has reduced demand for speculative altcoins.<\/p>\n
The buyback plan, while structurally positive, lacks immediate impact.<\/p>\n
The token recently broke below its 7-day and 30-day simple moving averages, triggering algorithmic and momentum-based selling.<\/p>\nOptimism (OP) price chart | Source: TradingView<\/figcaption><\/figure>\n
The Moving Average Convergence Divergence (MACD) indicator has also turned negative, pointing to accelerating downside momentum.<\/p>\n
The Relative Strength Index (RSI) remains near 44, suggesting OP is not yet oversold, meaning there is little technical support from bargain hunters.<\/p>\n
Together, these forces explain why OP is falling despite positive governance news.<\/p>\n
Long-term, tying token value to Superchain revenue remains a meaningful shift.<\/p>\n
Short-term, however, traders are focused on survival rather than future alignment.<\/p>\n
The next major test, according to analysts, will be whether OP can hold the $0.2528 support level.<\/p>\n
Upcoming macro data, particularly US inflation metrics, may determine the next move.<\/p>\n
But until the market sentiment improves, OP is likely to remain under pressure despite its improving fundamentals.<\/p>\n
Optimism (OP) underperformed as risk-off sentiment hit high-beta altcoins hardest. The buyback plan is delayed, small, and lacks immediate supply reduction. Technical breakdown below key averages has triggered strong sell-side momentum. The Optimism (OP) token is falling even after token holders approved a long-awaited buyback plan. At first glance, this seems counterintuitive, since buybacks are<\/p>\n","protected":false},"author":1,"featured_media":6164,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":{"0":"post-6163","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eurozone"},"yoast_head":"\n
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![\"OP](\"https:\/\/coinjournal.net\/wp-content\/uploads\/2026\/01\/OP-token-price-is-falling-despite-Optimism-buyback-approval.jpg\")
\n<\/picture> <\/div>\n<\/p><\/div>\n![\"Optimism](\"https:\/\/coinjournal.net\/wp-content\/uploads\/2026\/01\/OPUSDT-price-chart.png\")