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Optimism Token Price Prediction: OP Could Plunge, but a Yet-to-be Predicted Coin Offers Better Prospects

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Optimism price
Optimism price

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The price of the Ethereum Layer-2 token, Optimism (OP), has been increasing consistently since June 11, due to investors engaging in “buy the rumor, sell the news” trading in anticipation of the token unlocks program.

However, this could lead to a potential price drop soon. The rise of the Optimism network’s popularity, largely due to its fundamental software, has placed the token in a competitive position among the top twelve Ethereum Layer-2 networks.

 

Optimism As Strong Contender In Ethereum Layer-2 Wars

Optimism is a strong participant in the Layer-2 race on the Ethereum network. It comes closely after Arbitrum, boasting a staggering $2.1 billion in total value bridged.

Layer 2 Wars Optimism
Ethereum L2 Wars

OP’s stance against ARB’s leadership is gaining ground, with its daily user count nearing ARB’s. Arbitrum’s latest figures show 150,771 daily users, while Optimism has 100,276, escalating the Layer 2 conflict.

Optimism’s surge is partly attributed to the OP Stack, its primary infrastructure software, praised for its standardized, shared, and open-source approach to development. Although the Optimism Collective oversees the OP Stack, users can create their own chains atop this platform.

Impressed by OP Stack’s capabilities, Coinbase is utilizing it. Notably, Coinbase’s Ethereum Layer 2 network, Base, is built on the OP Stack.

Mantle, a modular L2 blockchain, operates on OP Stack and is designed to support the Ethereum network’s progress. It also facilitates the widespread adoption of decentralized technologies.

 

The surge in Optimism network growth, notably outpacing Arbitrum for the first time since January, is largely attributed to the launch of Worldcoin (WLD), Sam Altman’s innovative AI token. This token, introduced within the Optimism ecosystem, has significantly contributed to its expansion.

OP vs ARB
OP vs ARB Daily Transactions, Source: Artemis

Despite the hype around the OP token and the subsequent rally, Optimism price could be poised for a slump.

Logic For Possible Optimism Price Fall

The Optimism network increased the circulating supply by 24.16 million OP tokens after the token unlocks on July 30, accounting for 3.56% of the total supply. Asset values can sometimes increase prior to such occurrences.

A group of investors buys long, planning to sell on the token unlocks day, targeting long-term investors or whales who typically buy large amounts of tokens on this day. Similarly, spot traders, using their own capital, purchase assets and wait for a price surge before selling, which contributes to Optimism’s price rally.

Given that Optimism’s price has nearly doubled from its June 10 low of $0.895 to the July 31 high of $1.771, a price correction could be imminent. Traders may be preparing to take profits, which could lead to increased selling pressure and a potential drop in Optimism’s price.

Optimism Price Forecast

Currently, Optimism’s value stands at $1.715, reflecting a daily increase of 7.54%. The trading volume has soared by 157% over the past 24 hours, pushing the market cap up by nearly 10%. However, key indicators hint at a potential dip soon.

The Relative Strength Index (RSI) at 68 is nearing the overbought zone at 70, which could initiate a downturn. As a result, Optimism might recede toward the 200-, 100-, and possibly 50-day EMAs at $1.636, $1557, and $1.453, respectively.

If these supports don’t hold, the price might drop further to $1.403, last touched on July 26. If all these supports fail, a potential rebound could occur within the bull-favored demand zone.

A demand zone is an area favoring buyers, marked by steady prices and increased buying, particularly among institutional investors. Yet, if Optimism slips through this zone, it could trigger a sell-off, dragging the market value down to $1.083, marking a 35% decrease.

Optimism price
TradingView: OP/USDT 1-Day Chart

Alternatively, if bulls regain strength or late-stage investors join, the Optimism price could potentially surpass the $1.876 resistance. A clear breakthrough beyond this level would negate the bearish view, paving the way for a potential rise to the significant $2.500 mark.

OP Alternative

While investors monitor the $1.876 level for confirmation, consider CHMPZ, a yet-to-be-predicted coin that offers better prospects.

CHMPZ is the native token for the Chimpzee ecosystem, a remarkable project whose ICO recorded a stark $650,000. The project has just hit the $1 million landmark in presale sales, and in recognition of this much community support, they have unleashed a 10 million airdrop, with only 7.905 million airdrop tokens left.

Chimpzee empowers users to make a positive impact on the environment and save animals while earning income. Among the ways of earning income with this project include CHMPZ token trading, selling earned  CHMPZ tokens, Chimpzee NFT passport staking, receiving a percentage of NFT marketplace trading fee profits, and thriving in the game-based challenges.

The project is committed to charity and has set aside some tokens for that cause. Specifically, these go towards preserving nature and combating climate change.

Visit Chimpzee here.

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