Optimism (OP) has experienced a surge of over 7% in price, reaching intraday highs of $1.61 on Sunday. This increase comes after the Ethereum layer-2 protocol unlocked 24 million OP tokens, worth $38 million, into circulation on July 30. The release of these tokens is part of the scheduled unlocks for the cryptocurrency, with a total of 45 token unlocks planned. Despite fears that the increase in circulating supply could result in a dip in demand and price, OP’s price remained in the green. The daily chart indicates that bulls have the upper hand, with the Relative Strength Index (RSI) rising and signals of potential bullish strength from the Moving Average Divergence Convergence (MACD) indicator. If the price breaks above $1.64, the next target levels are $1.89 and $2.00.
OP Price Prediction After Token Unlock
With the recent unlock, the circulating supply of OP currently stands at 679,080,066 tokens. This release of 24 million OP tokens has added $38 million to the circulating supply. However, it is worth noting that an increase in circulating supply often coincides with a dip in demand and price. If downside pressure resurfaces, OP price could rely on support at $1.44 and then $1.20.
On-chain data reveals that Optimism’s transaction volume has recently surpassed that of other Ethereum Layer 2 solution, Arbitrum. Furthermore, the daily trading volume of OP has increased by 107% compared to the previous day, according to CoinGecko data. Overall, Optimism has proven to be one of the top-performing crypto assets in the past 24 hours.
Frequently Asked Questions (FAQs)
What is Optimism (OP)?
Optimism is a layer-2 scaling solution for the Ethereum blockchain. It aims to improve scalability and reduce transaction costs on the Ethereum network.
How does the token unlock affect OP’s price?
The token unlock adds more OP tokens to the circulating supply, which could potentially increase selling pressure and negatively impact the price. However, it ultimately depends on market demand and investor sentiment.
What are the next target levels for OP’s price?
If the price of OP breaks above $1.64, the next target levels are $1.89 and $2.00.
How has Optimism performed compared to other Ethereum Layer 2 solutions?
According to on-chain data, Optimism’s transaction volume has recently surpassed that of other Ethereum Layer 2 solution, Arbitrum.
Is the bullish trend likely to continue for OP?
The daily chart suggests that bulls have the upper hand in the short term, with key indicators such as the RSI and MACD signaling potential bullish strength. However, market conditions can change, and it is important to monitor price movements and market sentiment.