Optimism token has, alongside L2 Ethereum options been surging forward of the Merge.
Optimism witnessed robust fundamentals in July and August.
OP might fall by an additional 22%.
Optimism OP/USD is a Layer-2 scaling for the Ethereum community. Its function is to facilitate less expensive and fast transactions on Ethereum. Following the Ethereum Merge, eyes had been on options and scaling layers for value response. Since the Merge has occurred, it is essential to judge how Optimism has reacted.
Well, Optimism was the speak of the streets in July and early August as costs pumped. Whereas the positive aspects had been pushed largely by speculations, a few fundamentals helped. One consists of the liquidity mining program which Optimism launched on Aave in early August. The improvement pushed the deposits on Aave to Optimism up by a big 493%.
The Ethereum Merge was additionally including momentum to Optimism. The Merge is anticipated to extend the function of scaling options via a “Rollup-Centric Roadmap.” The roadmap permits Ethereum to turn out to be the info availability and settlement layer. It will go away the scaling function to Layer-2 Protocols.
OP dangers one other 22% drop as value falls post-Merge
Technicals should not convincing for the Optimism token. On the each day chart, the worth drop coincides with a MACD crossover to the bear zone. That allowed the worth to fall under the transferring averages.
Source – 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 can be invalidated if the worth recovers above the 20-MA. It needs to be confirmed with a transparent reversal and improved sentiment.
Concluding ideas
Optimism might 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 subsequent backside for OP.