Will This Year’s 230% Rally in Optimism Price Continue After the New Development?

Key Takeaways:

• Optimism price is rising in the past few days gaining more than 37% and is currently testing one of the important resistance zones
• The bulls have geared up since the start of 2023 and are believed to keep up the momentum until the price reaches a double-digit figure
• The user traction had dropped drastically which appears to have been revamped with the latest price action

Optimism gained immense user attention since its inception, but the rally intensified just before the Ethereum Merge. Since then the price remained elevated and gained immense momentum with the beginning of the year 2023. The price soared by more than 270% from as low as $0.9 to mark new yearly highs at $3.2. While bullish market sentiments have deeply impacted the rally, a couple of major upgrades also drove the price higher. 

One of the popular crypto exchanges, Coinbase, has launched Base, a layer-2 network using Optimism’s OP stack, and also released the testnet. Soon after the announcement, the price of OP surged by more than 8% and rose back above $3. A decentralized exchange, lending protocol, and decentralized apps (dApps) will be released with the launch of the Mainnet. 

Moreover, the crypto exchange also added that it will be closely working with Optimism collective with an aim to connect multiple blockchains which are using the same technology stacks, within the Optimism Ecosystem. This may be a game-changer for the layer-2 platform as other businesses may also follow Coinbase, enhancing Optimism’s liquidity and activity. 

Read More: Optimism Price Prediction

Optimism Technical Overview

Source: Tradingview

• The Optimism price has been rising since the start of the year but failed to surpass the resistance zone between $3.14 and $3.2
• The price presently is again testing the same levels and is likely to slice through the resistance zone as the technicals are bullish
• The MACD is getting closer to a bullish crossover after diverging from the last couple of contacts to the same resistance.
• Besides, the Average Directional Index (ADX) is displaying a bullish divergence which indicates the rally is gaining strength, hence it may positively impact the price ahead
• With a breakout from the resistance, the OP price is believed to rise high beyond $4 to mark a new ATH in Q1 2023

Optimism On-Chain Analysis

Optimism Network Growth

Source: Santiment

The popularity of the project depends on the adoption of the platform and its activeness. When new addresses are created every day, the adoption levels increase, and if these addresses perform any trades, the platform’s network growth surges. Much like active addresses, network growth records the trades of only the new addresses each day, regardless of whether it is a buy, a sell, or a swap address.

Presently, the levels have plunged heavily, which indicates no new users are joining the network as no new addresses are being created. However, with the recent price action and the network upgrades, more users are expected to join. Therefore, the possibility of a continued bullish trend still looms over the token. 

Read On: Top Layer2 Crypto Projects

Optimism Ethereum Daily Transaction

Source: Etherscan

Ever since its inception, Optimism’s daily transaction chart was on the rise. Regardless of the market conditions which were stuck under the bearish influence, OP’s platform remained active with elevated transaction count, block count, and the number of new addresses created. Woefully, all of them have slashed heavily in the first fortnight of 2023 despite the price rise. 

The dropped fractals indicate the lowered attention of the crypto-verse over the token in recent times. However, the token displays the potential to break above the consolidation, and hence the adoption rate may also surge. 

Concluding Thought!

The optimism price has been gaining huge traction in recent times and is hence believed to maintain a fine upswing ahead. Although the on-chain metrics display a diverse trend, the possibility of a bullish reversal may knock-in in the coming days. Once a minor bull run is triggered, the OP price may mark new highs and may continue to discover new ATH in the coming days.