www.banklesstimes.com
HomeNewsOptimism Price Prediction: OP is Ripe For a 40% Pullback
Optimism Price Prediction: OP is Ripe For a 40% Pullback

Optimism Price Prediction: OP is Ripe For a 40% Pullback

Last updated 5th Aug 2022
Disclosure
  • Optimism price has staged a strong rally in the past few days.
  • Apps in its ecosystem like Synthetix, Beefy, AAVE, and Velodrome have seen more activity

Optimism price has bounced back in the past few days as cryptocurrencies rebound. The OP token has risen to $1.70, which is about 345% above the lowest level this year. Its market cap has jumped to about $35 million.

What is Optimism and why is it rising?

Optimism is one of the leading layer 2 platforms in the industry. It is a top platform that helps developers accelerate their applications. Some of the top apps in the ecosystem are Thales, Synthetix, Lyra, Uniswap, Perpetual Protocol, 1inch, SushiSwap, and Celer among others.

As a layer 2 network, Optimism competes with other leading platforms like Polygon, Arbitrum, and Loopring among others.

Optimism price has jumped sharply in the past few days for several reasons. First, apps in its ecosystem have seen more activity. For example, the total value locked (TVL) in its DeFi platform has jumped to an all-time high of $552 million.

Synthetix, the biggest platform in Optimism, has seen its TVL rise to over $190.86 million. It has risen by 70% in the past 30 days. Beefy's TVL has jumped by 15,000% in the past few 30 days to over $22.9 million. Other apps that have risen sharply in the past few weeks are Velodrome, Uniswap, and Aave.

Meanwhile, data published in its explorer shows that the number of daily transactions have risen to over 239,000, which was the highest level since June this year. The number of transactions remain significantly below their all-time high of 478k.

Optimism price has also rallied because of the ongoing bull run in the cryptocurrency industry. For example, Ethereum has jumped to over $1,700 while Bitcoin is approaching the resistance level at $24,000. In total, the market cap of all digital coins has risen to over $1.2 trillion.

Optimism price prediction

The four-hour chart shows that the OP price has been in a strong bullish trend in the past few days. The rally gained more steam when it moved above the resistance levels at $0.6585 and $0.9775.

Optimism has moved above all moving averages while the Relative Strength Index (RSI) has moved to the overbought level of 90. It has also jumped above the Ichimoku cloud.

Therefore, while the overall trend is bullish, I suspect that the coin will soon pull back as sellers target the next key support level at $0.9776, which is about 40% below the current level.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.