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- 1 Optimism investors turned highly bullish after Coinbase launches its Layer 2 network using OP tech
- 2 OP token price gained 12% on the weekly basis but struggled to hold above $3.200 level
- 3 OP crypto price sustained above 50 and 200 day EMA
Optimism (OP) token prices had bounced back by taking support at 50 day EMA when the market came to know that Coinbase is launching its Layer 2 Network using Optimism tech which will help to boost the optimism ecosystem in coming months. Coinbase is now joining Optimism as a core developer for the latter’s development stack.
Currently, OP/USDT is trading at $2.886 with an intraday loss of 5.69% and the 24-hour volume to market cap ratio at 1.4728
Will OP token price hit new highs in coming months?
Optimism (OP) token seems to be in the bull run and continuing the upward momentum by forming fresh higher high swings. Recently, the news about Coinbase launching its Layer 2 network using Optimism tech has triggered the more positive sentiment and investors seem to be turning highly bullish for the future outlook of this token.
In the mid of January, OP token prices managed to reclaim above the 50 day EMA and slowly and steadily it picked up the momentum with increasing volume shows that the genuine investors have kept on accumulating from the lower levels and expecting more outperformance in the coming months. However, the rally took halt at $3.200 which is still acting as a strong hurdle level for the bulls and prices shows that more consolidation is needed to break out of the hurdle and dominate on the higher levels.
On the other hand, if prices face rejection from the supply zone mentioned above then bears might try to drag the prices down towards $2.000 level but as per chart structure the probability of bouncing back from the support level is higher and downside seems to be limited. Technical indicators like MACD curve is on the way to generate a positive crossover but the confirmation is still awaited and the RSI at 57 sloping downward denotes price will enter the neutral zone in the coming few sessions.
Summary
Optimism (OP) token prices are consolidating near the supply zone and anytime it might break out and give a massive up move which will surely boost the confidence of its long term investors. Technical analysis shows that, prices are into bulls grip and minor corrections are expected to be absorbed by bullish traders.
Technical levels
Resistance levels : $3.500 and $4.00
Support levels : $2.000 and $1.500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
