Optimism is a Layer-2 scaling solution on Ethereum
Optimism Price Drops Amid ETH Drop After Long-Awaited Merge
OP, the native token, has lost support and is under further bearish pressure
Ethereum Layer-2 Scaling Solution OP/USD Optimism Shows Fewer Signs of Renewal. A week after the expected Ethereum merger, optimism crashed about 15%. That’s happening amid dwindling hype surrounding gains after the aggregation into Ethereum-related tokens.
However, don’t let it twist. Ethereum’s shift from Proof-of-Work to Proof-of-Stake offers major benefits. These effects will be realized in the longer term and linked platforms such as Optimism will benefit. Meanwhile, investors may have to put up with a bearish market for optimism after the token lost key support. The bearish market also reflects concerns about tighter economies as central banks raise interest rates to contain inflation.
Optimism Prediction As Token Loses Grip From $1.0
Optimism token is trading at $0.922, dropping below $1, a support zone. The price level means that optimism has more than halved since its August high of $2.2. That also points to the bursting of a bubble, as it soared in July on the back of strong fundamentals.
Source – TradingView
A technical forecast shows that optimism has fallen below the 20 and 50 day moving averages. The drop below the $1 support opens up opportunities for further declines.
A look at the RSI shows a position of 38. The position indicates increased selling pressure. The token has more room to drop before we get into oversold territory. Optimism may continue to wane to find support at $0.74.
There is a lack of upward momentum for the Optimism token. The token lost significant support at $1. It means we have to look for lower prices. The next support is at $0.74 due to weak sentiment.