The crypto market is recording some pullbacks today, as many coins are now red. The global market cap is down by 1.46% in 24 hours, while the other top three coins, BTC, ETH, and USDT, are all red in hourly, daily, and weekly values. But amidst these pullbacks, Optimism (OP) is currently gaining above 8%. As of the time of writing, OP’s price stands at $3.03.
The OP price chart on Coinmarketcap showed that the coin traded at $2.8 on February 23. It recorded an intraday high of $3.05 and an intraday low of $2.70 before closing at $2.88. Today, February 24, OP has spiked above $3 after gaining 8%. Even as other coins have lost their 7 days gains today, OP still holds a 12.48% gain. Moreover, OP trading volume is also up by 63%, indicating increased activities.
Given the price trend that OP has shown today, it’s likely that some factors are pushing it. So, let’s consider some latest events on Optimism and how the price may move in the short and long term.
Recent Events On Optimism (OP)
Crypto prices react to developments, market sentiment, macros, and sometimes upgrades. If the utility of a network increases, more users will join its community, increasing demand and spiking its prices.
In the case of OP’s recent rally, the price jump could be attributed to some of the recent developments and the increased utility it offers. On Thursday, February 23, Coinbase announced the launch of its Ethereum Layer 2 product Base with Optimism technology.
According to the details, this layer 2 network aims to attract millions of new crypto users in some years. The project will also add OP utility, thereby increasing its users. Notably, after the announcement, the OP price spiked.
Another recent activity on the network is the recent airdrop by Collab.Land. The automated management tool distributed its COLLAB token on Optimism on February 23. The management tool integrates into Telegram and Discord for token-gated communities. According to Coindesk, almost two million wallets in more than 40,000 NFT-centric communities use the tool and will likely pay more attention to Optimism now.
Other factors pushing OP’s price include the increased activity on many of the decentralized applications (DApps) on the blockchain. These apps include a blogging platform Mirror; a top lending platform Aave, a yield platform; Pool Together; and derivatives platforms Perpetual Protocol and Synthetix. The network records increased recognition and adoption as more people utilized these applications.
OP’s Price Prediction, What Does The Chart Show?
Optimism is trading in the green today on the daily chart, with a price increase of over 8% within 24 hours. The bulls mounted sufficient pressure, leading to a golden cross formation on the daily chart.
The coin trades above its 50-day and 200-day Simple Moving Averages (SMA), confirming the bullish trend. Also, OP has formed an inverse head and shoulder pattern on the chart, a bullish signal. Its price has broken above the neckline, an ideal spot for long (buy) positions.
Optimism posted three consecutive green days with notable higher highs and higher lows, confirming the uptrend. The Relative Strength Index (RSI) is 63.00 in the buy zone. Also, the indicator points upwards, suggesting further rise as it approaches the overbought region of 70.
Optimism’s Moving Average Convergence/Divergence (MACD) is slightly over its signal line, reflecting a bullish reversal. It will likely rise higher in the coming days. Optimism’s support levels are $2.36, $2.53, and $2.71; its resistance levels are $3.06, $3.23, and $3.41.
OP is currently testing the $3.06 resistance level; a close above it today will spur more price increases for the asset. Expect a sustained rally in the coming days before a possible pullback for consolidation.
Note that altcoins are volatile and might struggle to regain their value after a price pullback. Also, remember that investments carry certain risks and should be approached with proper research, technical analysis, and risk management.