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Optimism Token has surged ahead of the merge, alongside L2 Ethereum solutions.
Optimism witnessed strong fundamentals in July and August.
Operating margin could decline another 22%.
Optimism OP/USD is Layer 2 scaling of the Ethereum network. Its role is to facilitate low-cost and fast transactions on Ethereum. Following the Ethereum merge, the focus turned to options and scaling tiers for price response. Now that the merge has happened, it’s important to assess how optimism has reacted.
Well, optimism hit the streets in July and early August when prices rose. One involves a liquidity mining program Optimism launched on his Aave in early August. With this development, Aave’s deposits increased significantly to Optimism by a whopping 493%.
The Ethereum merge was also fueled by optimism. The merger is expected to enhance the role of scaling his solution through a “rollup-centric roadmap.” Roadmap allows Ethereum to become a data availability and payment layer. Leave the role of scaling to the Layer 2 protocol.
Optimism token technicals are not convincing. On the daily chart, the price drop coincides with his MACD crossover into the bearish zone. This has pushed the price below the moving averages.
Source TradingView
A prolonged correction could push the OP back to late August lows of $0.98. This corresponds to a drop of about 22%. Our bearish forecast will be invalidated if the price recovers above the 20-MA. It should be confirmed with a clear reversal and improved sentiment.
Optimism may continue to dwindle despite the expected gains from the merger. This suggests that the token is already benefiting from post-merger expectations. $0.98 is OP’s next bottom.
