Optimism (OP) Climbs Over 10% On Weekly Chart, Will The Rally Last?
August 02 2023 - 3:00PM
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Following a slight improvement in the broader cryptocurrency
market, Optimism (OP) has posted positive gains today, August 2.
The token is now over 10% higher than seven days ago. Optimism’s
gain has placed it among the top-gaining coins today, with a nearly
3% gain in the last 24 hours. Optimism Price Action as Bulls
Struggle to Prevail According to CoinMarketCap data, Optimism
peaked at $1.6712 on Wednesday morning, an over 5% increase from
its past-day price. However, due to the intense struggle between
the buyers and sellers, OP has receded from the day peak and is now
traded at $1.63, with a 3.08% price increase. Related Reading:
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Reversal? Optimism maintained a fairly bullish momentum from July
13 to August 2, reflected in its over 22% 30-day price
increase. While the uncertainty about its next price action
remains high, speculations suggest the following developments might
influence the OP’s market outlook in the coming days. Optimism
Could Face Backlash Due To The Recent BASE Exploit Coinbase’s newly
launched BASE network built on the Optimism Stack reportedly
witnessed a backdoor contract exploit, leading to the loss of 597
Ether worth approximately $1 million. According to on-chain
investigations, the exploiters infiltrated a BASE Chain’s backdoor
contract, continuously minted tokens, and sold them for profit.
Data shows that the perpetrator address already minted 40 different
tokens, generating approximately 597 Ether in profit, which has
been moved out. Speculations are that the exploit might impact all
protocols linked to it, including the Optimism network, since BASE
anchors the OP Stack. Also, the BASE hype attracted several new
crypto addresses to the Optimism network. The recent hack may
depress investor sentiment, potentially impacting OP’s price. The
number of active addresses on the Optimism network grew
significantly over the last few months after BASE’s launch in late
February. However, this growth could be stalled due to the
unfortunate event on the BASE network. OP Price Outlook; Will the
Bulls Sustain the Rally? The OP/USD daily chart demonstrates
OP’s bullish momentum as the bulls fight to secure higher market
positions for the coin. OP has surpassed its two critical support
levels, and the bulls show no sign of stopping, evident in the
short green candlesticks formed above the $1.631 support level. The
Moving Average Convergence/Divergence is above the signal line with
green histogram bars that reflect the asset’s bullish momentum. In
addition, the RSI has crossed the overbought region and now sits at
75, demonstrating increased buying pressure on OP. Related
Reading: Here’s The Total Number Of XRP That Ripple Currently Holds
However, a bearish trend reversal is possible since the buyers have
reached saturation and may recede due to a decline in
momentum. As of the time of writing, OP trades at $1.63. But
the next few hours are critical as the price could decline to $1.61
if the bears reclaim control. Featured image from Pixabay and chart
from TradingView.com
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