Optimism (OP) Rallies 12% In One Week, But Can It Keep Going?
Many cryptocurrencies are down today as the broader cryptocurrency market retraced over the past week. This trend suggests that the once-high crypto investor sentiment has reduced, as shown by the Fear and Greed Index, which is now neutral. It could be due to the decrease in the US quarter-on-quarter GDP growth weighing on investor buying sentiment.
However, some coins beat the bearish trend, soaring higher over the past week amid massive losses in other coins’ gains. Optimism (OP), an Ethereum ecosystem cryptocurrency that scales Ethereum by issuing optimistic rollups, is among the top weekly gainers. According to coin tracker, CoinGecko, Optimism (OP) has seen a 6.3% price gain in a week amid an ongoing price decline.
Optimism (OP) Rallies Nearly 25% In Two Weeks, Are the Bulls Out?
Not only did Optimism sustain its 7-day gains, but data also shows its price has surged 24.6% in two weeks. This price action indicates that OP investors still maintain a bullish outlook on the coin. Bullish investor sentiments on a coin often reflect in its trading volumes, which is what has been playing out for OP over the past two weeks.
Coinmarketcap data shows OP saw a spike in trading volume on February 23. Its trading volume went from $407 million on February 23 to over $737 million on February 24, a nearly 2x increase within 24 hours.
On February 26, OP pumped on the Coinbase hype when the crypto exchange announced the launch of its Ethereum Layer2 network called Base on Optimism Stack. The coin surged nearly 18% within 24 hours of the announcement.
However, look at today’s OP/USDT chart, OP prices have formed red candles, indicating the bears may be claiming control. This observation reflects the coin’s current price action, as OP’s price has declined by 5.8% in the last 24 hours. The red candlestick formation indicates a short-term bearish price outlook for OP, after which the coin might resume its rally.
Recent Event On OP Ecosystem
A lot has happened in the OP ecosystem lately, alongside the anticipation of the Ethereum Shapella upgrade expected to take place today, February 28, at Epoch 56832.
For instance, Wormhole, an interoperability protocol, went live on Optimism on February 15. The integration would help users achieve faster transactions with lower fees. This advantage could attract more users to the Optimism network, which might help push OP prices up.
Also, on February 21, Kado Ramp, a payment infrastructure that allows users to buy USDC and ETH directly from their self-custody wallet, went live on Optimism. Kado Ramp could also bring more users to OP, which might have also contributed to the token’s recent price performance.
Optimism Price Outlook For March
At press time, OP is trading at $2.78. However, according to Coincodex price prediction, OP might reach $4.06 by March 10, 2023. Coincodex also predicts that OP price will observe some corrections before rallying by 35.63% on March 30 to $3.77.
Wallet Investor also predicted that OP would reach a maximum price of $3.284 by March 14, 2023. Following data from Wallet Investor, OP is currently at the first support level of $2.789, after breaking from previous supports of $2.679 and $2.534.
Its pivot point currently lies at $2.934. If the coin breaks out from this pivot point, it might rally above $3.044.
With a market capitalization of $867,395,599 at press time, OP ranks as the 61st largest cryptocurrency on CoinMarketCap.