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- Optimism ecosystem token has seen a surge as Coinbase has unveiled its layer 2 base
- Technical indicators of OP suggests a consolidation in price.It has seen a drop of 2.85% in BTC pair
Optimism is a layer 2 blockchain which is built on the top of Ethereum. It benefits from the security of Ethereum and helps to scale the ecosystem using rollups. It means transactions are recorded on Optimism and secured on Ethereum. It has more than $500 million in TVL which has made it popular among others. It is home to more than 100 protocols which has been growing. It is led by the Optimism foundation which is a non profit organization. Meanwhile OP ecosystem has seen surge as Coinbase has unveiled its layer 2 base. Optimism aims for minimum number of moving part while building a layer 2 solution for Ethereum
OP has a market cap of $905 million and is ranked 58th in the Cryptoverse. Volume of the asset price has seen a decline of 2% in intraday session. Volume to market cap ratio of OP suggests a consolidated trend in price.
Are Bears Looking To Push OP Price Down?
The weekly technical chart of the OP suggests a consolidated trend in price. It is trading in a downside trend but can move to a new high. On the daily chart it is trading near the value of $2.8 with a small drop in the intraday session. Resistance of the OP can be seen near $4.Meanwhile the support of asset price can be seen near $2.It is trading above the 50 and 100 Daily Moving Average. There can be a positive crossover which can push the asset price to a new high.
RSI of the OP is currently near 55 suggesting its presence in the neutral zone. There is a zero slope suggesting a consolidated trend in price.
Conclusion
Optimism has a strong TVL in the current ecosystem. OP tokens has seen a large growth with its L2 ecosystem. Various analysts are expecting a strong trend in the price.
Technical Levels
Major Support: $2
Major Resistance: $5
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 or stocks 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.
