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Optimism token has, alongside L2 Ethereum options been surging forward of the Merge.
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Optimism witnessed robust fundamentals in July and August.
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OP may fall by an additional 22%.
Optimism OP/USD is a Layer-2 scaling for the Ethereum community. Its position is to facilitate more cost effective and fast transactions on Ethereum. Following the Ethereum Merge, eyes had been on alternate options and scaling layers for worth response. For the reason that Merge has occurred, it’s essential to judge how Optimism has reacted.
Properly, Optimism was the speak of the streets in July and early August as costs pumped. Whereas the beneficial properties had been pushed largely by speculations, a few fundamentals helped. One contains the liquidity mining program which Optimism launched on Aave in early August. The event pushed the deposits on Aave to Optimism up by a big 493%.
The Ethereum Merge was additionally including momentum to Optimism. The Merge is predicted to extend the position of scaling options by way of a “Rollup-Centric Roadmap.” The roadmap permits Ethereum to grow to be the information availability and settlement layer. It should go away the scaling position to Layer-2 Protocols.
OP dangers one other 22% drop as worth falls post-Merge
Technicals are usually not convincing for the Optimism token. On the every day chart, the worth drop coincides with a MACD crossover to the bear zone. That allowed the worth to fall beneath the shifting averages.
Supply – TradingView
Assuming an prolonged correction, OP will fall again to the late August lows of $0.98. That represents a drop of round 22%. The bearish prediction might be invalidated if the worth recovers above the 20-MA. It ought to be confirmed with a transparent reversal and improved sentiment.
Concluding ideas
Optimism may proceed to fall regardless of the anticipated profit from the Merge. It means that the token already benefited from the post-Merge expectations. $0.98 is the following backside for OP.