Optimism Crashes 33% Following Token Unlocks, Why There Could Be More Pain To Come

Optimism (OP) has been one of the hardest-hit cryptocurrencies over the last week as bearish sentiment around the coin rose rapidly. The reason for this was a massive amount of OP tokens that were unlocked this week, leading to significant buy pressure on the digital asset. However, the bearish trend does not seem to have ended yet given that the altcoin could see more buying pressure. $600 Million Token Unlock Sends Optimism Spiralling On Tuesday, Optimism saw one of its largest token unlocks when over 300 million were released into circulation. These tokens accounted for around 9% of the total OP supply, which was a significant amount to move into the market, especially during a bear market. Related Reading: Bullish Case For Litecoin Grows Stronger As LTC Halving Draws Close The coins totaling 386 million OP at the time were worth approximately $600 million. This meant that there was now $600 million worth of new potential selling pressure for the token and the altcoin began to respond before the unlock was live. In the hours leading up to the massive unlock, OP’s price first dropped around 7%. But then the unlock triggered further sell pressure and by the time the sellers were done for the day, the digital asset had already lost more than 20% of the value it began the day with. OP falls to five-month low | Source: OPUSD on TradingView.com More Pain To Come For OP Holders? While it does seem that OP sellers are starting to tire out, the bearish case for the altcoin continues. This is because the $600 million unlock was only the first unlock for core contributors and investors, meaning VCs and others. Data from Token Unlocks shows that Optimism has another token unlock coming up at the end of June for a total of 24.15 million tokens. This means that a month from now, another $34.5 million worth of tokens will be unlocked. This 0.562% of supply may be smaller than the 9% unlock that took place in May but it will put selling pressure on the token nonetheless. $34.5 million in OP set to be unlocked on June 30 | Source: Token Unlocks At the time of writing, the coin is down 10% on the daily chart and 33% on the monthly chart. OP’s price has now fallen to $1.37, a price level that has not been seen since January. This is a 50% decline from its 2023 highs. Related Reading: Here Are The Top 3 Chinese Coins To Buy As China Leads The Bull Run If the bulls fail to recover OP’s price this week, then it could fall below the $1.3 support. A fall below this level would be detrimental to holders as the next likely support for the digital asset would sit at $1.2, prompting a further 10% drop. Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from Coin Culture, chart from TradingView.com

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Analyst: OP Is Undervalued But Will Skyrocket Because Of Coinbase And Base

Adam Cochran, a partner and professor, is bullish about OP, the native token of Optimism, the layer-2 scaling solution for Ethereum.  Taking to X, Cochran is convinced OP is undervalued, pointing to the significance of Coinbase and the brand it has created over the years as a crypto exchange and investor in multiple products. In 2023, Coinbase backed the development of Base, a layer-2 scaling solution for Ethereum that uses Optimism infrastructure for its optimistic roll-up.  OP Will Rocket Because Of CoinBase And Base In coming up with this assessment, the investor highlights Coinbase’s vast user base and ability to drive retail adoption towards Base potentially. And, as aforementioned, since Base uses Optimism, the expected adoption spike will significantly boost OP from current spot levels.  Related Reading: Bitcoin OTC Desks Dried Up To 40 BTC: What This Means Cochran argues that the “power of discoverability” associated with Coinbase, a brand that facilitates billions of dollars in daily trading, will be crucial to Optimism’s success. This is particularly relevant when looking at OP prices when writing. When writing, OP is stable but up 220% from October lows. The token has been trending higher, benefiting from the broader crypto rally. Even so, though in an uptrend, OP has not reclaimed 2023 highs of around $4.2. To drive the point home, Cochran compares how the BNB Chain blew up in the number of active users. In the last bull run, the chain had an active decentralized finance (DeFi) and non-fungible token (NFT) ecosystem. The BNB Chain’s popularity and soft landing is because the smart contracts platform is associated with Binance, the world’s largest cryptocurrency exchange.  Further to the point, the success of Solana, the partner argues, lends its success to the now-defunct FTX. At its peak, FTX injected billions to fund the development of Solana. It was also actively involved in financing some of Solana’s active protocols.  The Great Convergence Of Supportive Events Presently, Coinbase is streamlining its operations, recently stopping support for Bitcoin, Litecoin, and other UTXO tokens via Coinbase Commerce. Their focus is on Ethereum-compatible tokens, which could provide hints that Coinbase Commerce might soon be integrated into Base. Related Reading: Fetch.AI (FET) Surges 21%: Why This Rally Is Just Getting Started From the protocol level, Ethereum plans to implement upgrades to make transacting on layer-2 platforms even cheaper. The Dencun Upgrade is scheduled for March and will see Ethereum enhance as part of its long-term scaling roadmap. L2Beat data on March 1 shows that Optimism has a total value locked (TVL) of $7.8 billion, roughly half that of Arbitrum. Meanwhile, Base has been rising up the rankings, commanding a TVL of approximately $1 billion. Feature image from Shutterstock, chart from TradingView

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Optimism Bedrock Upgrade Sends Network Transactions Soaring By 67%

Optimism (OP) is a layer 2 scaling solution that operates on top of the Ethereum mainnet, providing faster and cheaper transactions for Ethereum users. It was launched in 2020 and has quickly become one of the most popular scaling solutions for the Ethereum network. On June 6, Optimism released its much-anticipated Bedrock upgrade, which promised [...]

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Optimism Price Bloats 25% – OP Seen Ballooning In Coming Days

Optimism price registered a spike of 25% after its opening at $1.9890. The OP/USD pair currently trades at $1.9510, with a high of $2.2150 and a low of $1.9390.  The current price movement of Optimism is going with the flow as far as the Ethereum layer-2 protocol is concerned. It makes use of rollups that enable quicker and low-cost Ethereum transactions. OP Labs of Optimism protocol has announced this week that the planned update will happen this quarter 4 of 2022. And when that happens, this will be a game-changer. Early Friday, OP has spiked by 11.43% and the sentiments show that it will escalate further. But, the coin was not able to keep up and dropped by 1.59% overnight. As the demand for Optimism increases, the coin’s bullish recovery also continues. The value of OP has risen to $2.2 which is the highest it has been since June 1, 2022. At present, the coin is now valued at $500 million as it increased by more than 421% from its all-time low. Related Reading: Shiba Inu Displays Surprising Price Movement – Can SHIB Ditch The Flatline? What Is Optimism? Optimism has a very ambitious goal as it seeks to solve a lot of Ethereum’s issues. It aims to speed up and also lower the costs of Ethereum transactions by enabling optimistic rollup. In the development of layer-two solutions geared for Ethereum, the network is looking to keep it minimal. Optimism wants to dispel the complexity and speed up Ethereum transactions. The Optimism Foundation is on top of the project and governs the OP token that is used for voting on governance proposals. On July 25, OP Labs launched Drippie that is native to Ethereum that aims to solve many pain points when it comes to blockchain automations. Chart: TradingView.com Optimism Sees Spike In Investor Interest Optimism price is on a surge due to the increase in investor interest and positive sentiment around the network’s recovery. More so, its TVL has also targeted a new high and there is also that increased fear of missing out (FOMO). Many people are optimistic that the bull run will continue especially after it has spiked by more than 400%. Investors are looking for another ATH or a price increase. More so, buyers are also excited with Optimism outpacing Polygon which currently has a TVL of more than $1 billion. The OP/USDT pair is beginning to recover as it skyrocketed above 38.2% following the Fibonacci retracement level that stretches at $1.389. Currently, the pair is trading at $1.891 and resistance at $1.700. A dip below this figure will pump up the selling trend until it reaches $1.389. Related Reading: SOL Loses $40 After The Exploit – What’s The Next Support? Crypto total market cap at $1.07 trillion on the daily chart | Source: TradingView.com Featured image from Crypto News, chart from TradingView.com

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Optimism (OP) Trading Volume Soars Amid Bullish Price Surge

Optimism is trading in the green today, with its trading volume up by over 54%. OP traded at $0.9231 on January 1, 2023, and peaked at $3.0294 on February 7, close to its all-time high value of $4.5692. Currently, OP is at the $1.6 price level as it seeks to consolidate its gains, which is [...]

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Optimism Layer-2 Is Upgrading: Is This What Bulls Want?

Optimism, one of the most popular Ethereum layer-2 platforms, will release the Bedrock upgrade on June 6, 2023. Optimism Upgrading Via Bedrock In Early June The layer-2 provider on Ethereum says the release is “highly anticipated” by the community and will introduce some changes that make the protocol even more scalable, reducing transaction fees. As it is, [...]

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Optimism (OP) Faces Potential Decline To $1.80 Analyst

Optimism (OP) has experienced a market rebound in the past week gaining by 35.76% based on data from CoinMarketCap. The Ethereum layer-2 token hovers above $2.20 with investors strongly bullish on future price gains. However, certain trading indicators signal otherwise. Related Reading: Optimism: Major Partnership Pushes OP Price By 24% Optimism Likely To Fall By 18% In a November 23 post on X, renowned crypto analyst Ali Martinez shared a bearish prediction on Optimism despite the tokens current upward trend.  According to Martinez, the TD Sequential has flashed a sell signal on OP’s 4-hour trading chart, presenting the potential for an imminent price dip. In trading markets, the Tom Demark (TD) Sequential indicator is commonly used to identify potential price exhaustion or continuations by analyzing patterns within price bars. After OPs rally in the past week, the TD sequential now points to a trend exhaustion, suggesting a possible price reversal. Following this signal development, Martinez predicts OP could slide to $2.0. However, further correction could force the tokens price to around $1.80 indicating a potential 18% decline from the current market price. Martinez’s price projection is further backed by OPs Relative Strength Index, an indicator that measures the speed and magnitude of an assets price movement to determine if it is overbought or oversold. According to data from OPs 4-hour trading chart, the tokens RSI valued at 65.18 and descending from the overbought zone indicates buying pressure is weakening and a potential price correction is imminent.  However, Optimism remains well above its 100-day simple moving average (SMA) which suggests a possible uptrend continuation.  This factor, combined with the present strong bullish sentiments in the altcoin market suggests OP may maintain its current price rally, reaching as high as $2.5 at which lies its next significant market resistance. Related Reading: Optimism Superchains L2 Mode Network Launches New Governance Model Heres Why Optimism Price Overview  At press time, Optimism exchanges hand at $2.29 following a 1.64% gain in the past 24 hours. Meanwhile, the altcoin’s daily trading volume is down by 13.17% and valued at $860.51 million. On larger time frames, OP is significantly impressive notching gains of 35.76% in seven days as earlier stated, and 33.77% in the past 30 days. Despite recent gains, the Ethereum-layer 2 token remains 54.65% away from its all-time high of $4.85. However, OP remains an investor favorite considering its status in the Ethereum ecosystem. According to data from Top 7 ICO, Optimism is the Ethereum layer-2 network with the third largest total value locked (TVL) valued at $6.46 billion falling behind Base ($7.02 billion) and Arbitrum ($14.3 billion). Featured image from Coinmonks, chart from Tradingview

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