The cryptocurrency Optimism reached as a layer 2 scaling solution of the Ethereum blockchain within the last few days new price highs.
At the same time, the total value-locked of the protocol has increased by a whole 268 %.
In our Optimism Coin analysis we consider current developments and interpret the technical chart situation of the coin.
Current information on the cryptocurrency Optimism (OP)Historical price development of the OP Coin since June 2022
Optimism Coin price is on the upswing: demand for layer 2 solution is rising rapidly
The cryptocurrency Optimism (OP) is a Layer-2 Blockchain on Ethereum (ETH).
The Optimism Blockchain uses so-called optimistic rollups to scale the Ethereum blockchain.
Ethereum, as a layer-1 blockchain with its mainnet, provides a secure framework for the transactions recorded on Optimism.
This guarantees a smooth user experience and at the same time ensures the Security through the consensus mechanism of Ethereum.
Which increased demand the OP Coin was once again confirmed for the airdrop on May 31, 2022.
Due to too many requests the Optimism blockchain was briefly slowed down to participate.
Sup sleuths-as you might have guessed, OP Drop #1 launches today. We have NOT officially announced yet, but we’re already experiencing an all-time high demand. We knew everyone would be excited, but holy cow—y’all just couldn’t wait for #OPSummer.
– Optimism (✨✨_✨✨) (@optimismFND) May 31, 2022
Incentives for network participation boost DeFi activities
In the following weeks, more precisely on September 19, the long-planned Merge the Ethereum blockchain from proof-of-work to proof-of-stake will finally take place.
Ethereum Merge: ETH Proof-of-Stake Conversion Dated
Developers of the cryptocurrency Ethereum (ETH) announce the date for the conversion of the blockchain from proof-of-work to proof-of-stake: the merge is getting closer and closer.
All details about the Ethereum (ETH) merge can be found in the article
With the new “Optimism Collective” project, the cryptocurrency wants to convince even more users to use the Optimism blockchain – with success.
The team comments on the concept itself as follows:
The collective consists of two houses: the Token house and the civic house. These houses have the task of reconciling long-term visions with short-term incentives.
In total, there will be Any monies for charitable projects and those who are committed to such projects, provided by.
The aim of the whole is a constant growth curve the Optimism cryptocurrency network.
It remains to be seen how sustainable user participation will be for optimism in the future.
Because in the long term, the Added value always trump the short-term incentive in order to be able to create growth.
Introducing the Optimism Collective
It’s time for a new chapter. Scaling the technology alone is not enough. We have a duty to scale our values along with our networks. In pursuit of this mission, we are excited to announce the Optimism Collective.
Total-Value-Locked des OP Coins Outperforms Cryptocurrency Competitors
Over the past few weeks, the Optimism Blockchain has managed to prove itself as the largest layer-2 solution for Ethereum (ETH).
Measured by Total-Value-Locked (TVL) the competitor was overtaken by Arbitrum.
List of the top 9 DeFi blockchains measured by TVL
At the current time, the Optimism protocol with a total TVL of $1.06 Billion almost 150 million US dollars above that of Arbitrum.
With a ratio of market capitalization to total value-locked of only 0,41 from this point of view, one could Undervaluation the cryptocurrency optimism can be derived.
Optimism TVL now at $2.17b 🤯
For reference, Avalanche TVL is at $2.42b
And still $OP is only at 5.7% of $AVAX marketcap. The market is clueless about what’s going on and not pricing $OP correctly.
It’s fun to be early. pic.twitter.com/Zz580wnkRK
– Alucard.eth 🦇🔊🐬(@dracula.lens) (@Alucard_eth) August 6, 2022
Because in a practical sense, the OP Coins is currently only evaluated at a percentage of 40% in relation to the value in the protocol.
In the case of a Value of 1 can you generally get from a neutral or fair valuation assume.
Development of the total-value-locked of the cryptocurrency Optimism (OP)
While many DeFi protocols had to record a decline in TVL, the total value-locked of Optimism has been able to more than triple.
Current chart analysis on the Optimism (OP) Cryptocurrency
While the crypto market is currently still in a so-called bear market rally, the OP Coin is in the Flying high.
Since mid-June, a Upward this has been confirmed several times.
Consequently, it can be recognized as the first trend line and therefore takes on a special importance.
Within the price development, a 2nd trend line was formed with the increased volatility in the form of bullish price impulses.
Both serve as chart support if the Optimism (OP) price resets.
In the area of 1.65 US dollars, the price level, which was still acting as resistance in July, could change into a Course Support be converted.
Cryptocurrency Optimisn (OP) on the 3-hour chart
In the 3-hour chart view, the Relative Strength Indicator (RSI) cool down in the meantime.
While at the end of the month of July it was still at a very strongly overbought level with a value of 89, it is currently at a neutral value of 50.
Forecast for OP Coin: Further price increases for optimism?
For the forecast, we look at the rather long-term 1-day chart of the OP Coin.
In this case, each candle represents an entire day of the course of the Optimism cryptocurrency.
To begin with, we can state that the Volume contrary to the price increase within the last 4 weeks already decline has become.
A decrease in trading volume can generally be considered as Warning signs for an outstanding Cool be classified according to the course development.
Chart analysis: basics, key figures and tips (2022)
Chart analyses are considered the basis of the classical valuation methods. Bitcoin2Go shows the basics and 5 most important key figures for the analysis method.
Furthermore, the RSI has been trading above the 70 limit on the 1-day chart since June 27.
From that level, an asset is considered in technical analysis as overbought classified, so sooner or later you expect a price reset to occur.
With the help of Fibonacci Extensions based on the past price development in combination with statistical probability, can we identify potential Resistance and support markers mark.
Chart of the OP Coin in the 1-day view
Therefore, for the OP Coin, the holding of the 1.618 Fibonacci Levels especially important at a rate of $ 1.65.
Exactly at this value is also the indicator of the average courses past.
Should the Optimism cryptocurrency succeed, that $1.65 Level up keep and this Increase volume, a continuation of the current trend can be expected.
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