- Optimism price has lost almost 50% of its total value in the past few weeks.
- The developers are scheduled to launch the bedrock upgrade in June.
- The outlook of OP is bearish in the next few months.
Optimism’s OP price moved sideways on Wednesday as investors reacted to the upcoming Bedrock upgrade scheduled for June. OP crypto price was trading at $1.6850, where it has been in the past few days. This price is ~50% below the highest level in March this year.
Optimism Bedrock upgrade
Optimism is one of the fastest-growing players in the blockchain industry. It is a layer-2 network that supercharges dApps in Ethereum’s network. These dApps achieve faster speeds and extremely lower transaction costs.
The biggest Optimism news is that the developers are working on the biggest system upgrade in its history. It will be so huge in that it will be a hard fork that will see the introduction of Bedrock chain as the continuation of the old one.
The upgrade will now happen on June 6 and will last for less than 4 hours. During the upgrade, the developers will pause all deposits and withdrawals to prevent any tokens from being lost.
The goal of this upgrade will be to improve the performance of the current version of Optimism. This means that the new version will be more stable, have faster speeds, and be more secure.
The new upgrade comes at a time when Optimism is facing substantial competition in the layer 2 industry. The biggest competition is coming from Arbitrum. Optimism has 135 protocols in its ecosystem and over 97k users. Arbitrum, on the other hand, has 330 protocols and 199.7k users and a total value locked (TVL) of more than $3.7 billion.
It is also competing with Polygon, which has 414 protocols and over 373k users. Optimism has a total value locked of over $1.19 billion. Therefore, it hopes that this upgrade will bring more developers and users in its ecosystem.
Optimism price forecast
So, how will the OP price trade ahead of the bedrock upgrade? Turning to the daily chart, we see that the Optimism price has been in a bearish trend in the past few weeks. This sell-off happened after the token formed what looks like a triple-top pattern.
Optimism has cruised below the 25-day and 50-day moving averages and the psychological support at $2. It is also moved below the key support at $1.8, the lowest level on March 11. OP has also formed what looks like a bearish flag pattern. Therefore, I suspect that the token will continue falling as sellers target the support at $1.4140.
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