Optimism token has, alongside L2 Ethereum options been surging forward of the Merge.
Optimism witnessed robust fundamentals in July and August.
OP may fall by an extra 22%.
Optimism OP/USD is a Layer-2 scaling for the Ethereum community. Its position is to facilitate less expensive and fast transactions on Ethereum. Following the Ethereum Merge, eyes have been on options and scaling layers for worth response. For the reason that Merge has occurred, it’s essential to judge how Optimism has reacted.
Nicely, Optimism was the speak of the streets in July and early August as costs pumped. Whereas the good points have been pushed largely by speculations, a few fundamentals helped. One contains the liquidity mining program which Optimism launched on Aave in early August. The event pushed the deposits on Aave to Optimism up by a big 493%.
The Ethereum Merge was additionally including momentum to Optimism. The Merge is anticipated to extend the position of scaling options by means of a “Rollup-Centric Roadmap.” The roadmap permits Ethereum to turn out to be the info availability and settlement layer. It’s going to go away the scaling position to Layer-2 Protocols.
OP dangers one other 22% drop as worth falls post-Merge
Technicals are usually not convincing for the Optimism token. On the each day chart, the value drop coincides with a MACD crossover to the bear zone. That allowed the value to fall under the shifting averages.
Supply – TradingView
Assuming an prolonged correction, OP will fall again to the late August lows of $0.98. That represents a drop of round 22%. The bearish prediction might be invalidated if the value recovers above the 20-MA. It must be confirmed with a transparent reversal and improved sentiment.
Optimism may proceed to fall regardless of the anticipated profit from the Merge. It means that the token already benefited from the post-Merge expectations. $0.98 is the subsequent backside for OP.