OP Token Experiences Sharp Decline Following Base's Departure

The cryptocurrency market has seen a substantial decline in value for OP, with a 22% drop in just 24 hours. This sharp decrease is largely attributed to the departure of Base from the OP Stack, a crucial change that has sent shockwaves through the market.

Base's decision to consolidate its network activities onto an independent chain has resulted in the loss of a significant revenue source for OP Stack. As a result, sell volume has increased by 157% to $187 million, with spot traders depositing over $14 million in OP tokens onto exchanges and withdrawing only $13 million. This net inflow of $1.45 million indicates a clear intention to dump.

The technical analysis of the situation suggests that the bears are firmly in control, with 1.28 million USD in long orders being liquidated compared to just $80,000 in short orders. The chart is also indicating a free fall market structure break, with OP breaking a failed inverse head and shoulders pattern and the Bull Bear Power (BBP) indicator showing exploding selling momentum.

The potential consequences of this downturn are significant, with OP potentially dropping below the psychological bottom area of $0.10 if the bulls fail to reclaim the resistance area of $0.20. The market's reaction to Base's departure from OP Stack will be closely watched in the coming days as investors assess the impact on the cryptocurrency's value.