Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes
July 30 2024 - 4:00AM
NEWSBTC
Optimism has been seeing bearish action since the start of this
month. But this week, it has been much worse for investors and
traders. According to Coingecko, the token is down more than 12%
since last week. Related Reading: Bitcoin On Fire: 20% Surge
In 3 Weeks Teases Record-Breaking Potential With a market
correction underway, more pain can come to all portfolios carrying
OP. However, there are several reasons why investors and traders
should still be on board with Optimism. Growing On-chain Use By An
Expanding Userbase Price-wise, OP looks like a hard bargain after a
month of hard-battering by the bears. However, on-chain data looks
vastly different. According to data tracked by Nansen,
on-chain growth is booming for Optimism. The platform’s growth as
the self-named “Superchain” on Ethereum is working as active
addresses continue to ramp up along with transactions, indicating
chain-wide usage across its different constituent chains. The
platform has also announced several events that potentially
impacted this on-chain growth. Optimism is hosting a chain-wise
hackathon tomorrow, July 31, contributing to this sudden increase
in active addresses on the platform. This should offset any shift
in investor confidence as it paints Optimism positively: a platform
worthy of development with the support of a growing
community. 🟡⚪️Superhack is a Superchain wide hackathon. 🔵🔴
Sign up and check out bounties from teams like @worldcoin @base
@modenetwork @Celo and more! Details via link in @ETHGlobal‘s bio.
Apply before July 31. https://t.co/EBsgKWk9Z2 — Optimism
(@Optimism) July 26, 2024 The organization also announced the next
Retro Funding round which will reward projects based on three
categories: Ethereum core contributions, OP stack research and
development, and OP stack tooling. The reward for the event will be
8 million OP tokens which will further help the winning projects
increase their impact on-chain. $OP PUMP THIS SHIT
pic.twitter.com/jySc2uxBnI — ProfessorAstrones (@Astrones2) July
24, 2024 These metrics contribute to a stronger bullish sentiment
among analysts like X user Professor Astrones, showing support for
OP as he shows that the token has broken through the downward trend
it has followed since early this year. Although confidence in
the platform and token is still high, some things have to happen to
OP to see green once more. Bulls Should Wait For The Perfect Timing
As of writing, OP bulls have a perfect and stable platform for a
rocket upwards, and it should be noted that $1.694 is the long-term
support level for this movement. Related Reading: All-Time Highs
Ahead? Dogwifhat (WIF) Poised For Big Growth — Analyst However, its
high correlation with Ethereum leaves much to be desired. Bitcoin
and Ethereum move in sync, meaning if one experiences pain, the
other drops too. OP’s indirect correlation with Bitcoin will have a
big impact on how the token moves soon. With the current
market correction, investors and traders should lower their
expectations of a breakout in the coming days. However, the strong
support on $1.694 gives bulls a stable platform to launch
upward. Should the bulls lose this position, expect more pain
within the coming days or weeks. But if the level is held strongly
$2.331 will be the target level for the bulls. Featured image
from Pexels, chart from TradingView
Optimism (COIN:OPUSD)
Historical Stock Chart
From Jul 2024 to Jul 2024
Optimism (COIN:OPUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024