The price of positivity has decreased by 5.5% over the course of the last 24 hours, bringing it to $2.77 in the context of a decrease of 0.5% across the board for the cryptocurrency market. The news that Coinbase will be introducing its own layer-two network for Ethereum using technology based on optimism has helped propel the price of the alternative cryptocurrency, which has increased by 7% in the past week and by 27% in the past 30 days.
Even though the short-term surge that was caused by this news has since died down, the medium-term and long-term prospects for OP continue to look very promising. Because Coinbase is developing Base, its layer-two sidechain, using Optimism’s open-source OP Stack, this will substantially contribute to the growth of the Optimism ecosystem over the next few months, which will also help to increase the price of OP.
Price Projection for Optimism: OP Moves Further Away From ATH, But $10 is Still in Perspective
The OP’s indicators would seem to point to the fact that a selloff is definitely overdue in the near future, with the coin appearing to be a little overbought at present. For example, the moving average for the past 30 days (shown in red) has surpassed the average for the past 200 days (shown in blue), which is a warning indication that the trend is about to change.
After spending most of the year at or above 70, the OP relative strength indicator (shown in purple) has recently started a downward trend toward the value of 50. In other words, it had been bought too much in the weeks before, so its price may drop for a short time until its RSI reaches a point where it stops falling.
The price of $2.70 is an important support level to keep an eye on. If OP breaks decisively below this level, it is possible that it will continue to fall even further, despite the fact that its recent momentum indicates that it should be able to hold out for a little while longer.
Recent developments give rise to the possibility that OP will wind up being one of the tokens that bring in the most revenue in 2023. Most importantly, Coinbase’s announcement this week of its Base Layer 2 network is a huge victory for optimism, as the US-based exchange is now joining the ecosystem of the platform as its second core developer. This is a win for optimism on a massive scale.
As was explained in a blog that accompanied Coinbase’s announcement, the cryptocurrency exchange’s participation in the Optimism ecosystem indicates that the company does not view Base as a competitor to the more established Layer 2 but rather as an addition to what will eventually become an interoperable “super chain.” The following was written in it:
Because of this, we are collaborating with OP Labs and the Optimism Collective to develop a strategy for scaling Ethereum in a manner that does not require centralized control. Our goal is to build a robust developer ecosystem consisting of interoperable L2s and rollups with the intention of assisting the onboarding of the next billion people into Web 3.
Because of this, the majority of the decentralized applications (dApps) that are launched on Base are also likely to be compatible with Optimism. This is because the basic optimism code is used. Even if Base ends up becoming larger than the older layer-two network, the developers of Coinbase are currently working on expanding Optimism. This essentially means that Coinbase is working on expanding optimism.
It is also heartening to observe that a large number of developers and platforms have stated their support for Base, with various partners having already been announced. Due to Coinbase’s previously stated dedication to interoperability, this essentially means that Optimism will gain more support and more partners in the near future.
Prior to the announcement made by Coinbase, Optimism was already a significant layer-2 network for Ethereum. Since the beginning of the year, its total value locked in has increased by approximately 97%, bringing it up to $989 million. It is also vital to note that this value has not changed.
Coinbase’s entry into the Optimism ecosystem is only going to help Optimism’s situation become more stable and secure because it was already in place before Coinbase’s involvement. As a direct result of this, you should anticipate that OP will continuously go up over the next few months.
Even though its price might drop further in the days ahead, the underlying fundamentals are getting stronger, which will help it rebound in due time. It is anticipated that its price will surpass $3.22 and approach $4 in the following few months, marking a new all-time high for the asset in the coming weeks.
If the broader cryptocurrency market continues to experience a steady recovery, the OP may rise even higher from there, and some ambitious holders have their sights set on $10.
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