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- 1 OP tokens worth over $587 Million are going to unlock which may push the price down.
- 2 Technical indicators of OP are favoring a downside trend in price. It has seen a drop of over 7% in the intraday session.
Optimism is a layer-2 blockchain built on the Ethereum blockchain. The transactions are recorded fruitlessly on Optimism and secured on the Ethereum blockchain. It is one of the biggest solutions for Ethereum with TVL over $1.22 Billion. They aim for the minimum number of moving parts while building L2 on Ethereum. The transactions per day on Optimism is near 290.5k with over 30 Day Moving Average of 245.8k.
The transaction fee per day of OP is 79.29 ETH with an average of 95.67 ETH as per Dune Analytics. The optimism design process is built around the idea of long-term sustainability. The transaction of OP is submitted to Ethereum without direct proof of validity and can be challenged for a certain period of time. OP token worth over $587 Million is set to be released in the open market. OP may see strong growth in the near future.
OP is ranked 84th in the CMC and has a market cap of $486 Million. The upcoming token unlock will nearly double the circulating supply. The V/M ratio of Optimism suggests a weak momentum in price.
Will OP Price See A Drop To $1?
The weekly technical chart of Optimism price suggests a consolidated trend in price. On the daily chart, it has been moving in a downside trend and can hit the next support level. OP is currently trading near the value of $1.42 with a drop of 7% in the intraday session. The upside trend of OP price can see a halt near the value of $1.8.
Meanwhile, the support of the asset price can be observed near $1.2. The asset price is trading below the 50 and 100 Daily Moving Averages. If a negative crossover happens then a bearish momentum can be seen. The RSI of OP price is near 30 with a small downside slope in it.The overall sentiment of RSI suggests a downside trend.
Summary
Optimism is going to see a token unlock which may push the asset price down. OP price is currently in a bearish trend which can push the price down.
Technical Levels
Major Support:$1.2
Major Resistance:$1.8
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.
