Layer 2 cryptocurrency price up sharply

Layer-2 scaling solution Optimism (OP) is gaining popularity among Ethereum users. Despite a steady decline in recent months, the costs of a transfer on the Ethereum (ETH) main chain are still significantly higher than those of the Optimistic Rollup scaling solutions Optimism and Arbitrum. The OP course was accordingly bullish in the first few weeks of trading and was one of the top performers among the 100 largest cryptocurrencies. Optimism is currently trading around 90 percentage points above its price at the beginning of the year. The OP price is thus following the ongoing recovery in the crypto market and could continue to expand its trend movement if the daily closing price is above USD 1.99. As long as the price mark of USD 1.47 is not permanently abandoned, the chart image should continue to be rated bullish.

Course analysis based on the pair of values OP/USDT on Kucoin

Bullish price targets: $1.84, $1.94/1.99, $2.30, $2.49, $2.94, $3.33, $3.97, $5.00

Optimism: Bullish price targets for the coming months

After rising into the red resistance zone between USD 1.84 and USD 1.99, the Optimism price is currently consolidating slightly, but is still trading within range of its high for the year at USD 1.74. As long as the OP price does not sustainably fall below the first support at USD 1.66, the bulls will continue to try to get back to the high for the year in a timely manner and break through the mentioned resist area. In addition to the highs from August 2022, the 78 Fibonacci retracement of the current price movement also runs here. If Optimism then closes above the red zone at the end of the day, an attack on the summer high at USD 2.30 should be planned.

Further price increase to be expected

Although some investors are likely to realize profits here, if the OP price stabilizes north of USD 1.99, the USD 2.49 mark should also be targeted in the future. Trading on Kucoin began at this price level on May 31, 2022. If this price level is also overcome, the all-time high of USD 2.96 will come into focus. The 138 Fibonacci Extension also runs here. A setback is to be planned again. If the mood on the crypto market remains bullish and Optimism soars to new highs in the coming months, the 161 Fibonacci Extension at USD 3.33 will be the first target for investors to see. This price target is to be regarded as the first medium-term target for Optimism. As soon as the OP price has also sustainably overcome this price level, the bulls are likely to target the area around USD 3.97. In the long term, Optimism could even rise to the maximum price target of USD 5.00 in 2023.

Bearish price targets: $1.58, $1.47, $1.36, $1.27, $1.16, $1.03, $0.88, $0.76, $0.65/0.63, 0 $.57, $0.45

Decentraland: Bearish price targets for the coming months

Should the bears succeed in dynamically pushing the OP price below USD 1.58, a retest of the purple support zone in the range between USD 1.47 and USD 1.36 should be planned. Optimism should find short-term support here. Only when this area is abandoned by the bulls at the end of the day will the correction expand to at least USD 1.27. However, a retest of the breakout level in the area of ​​USD 1.16 would then be more likely. The buyer side is likely to make more purchases here and try to stabilize the OP price. If the attempt fails and the bears remain in control, the 23 Fibonacci retracement at USD 1.03 will come into focus. If the support around USD 1.00 does not hold up either, the correction extends to the lows from December 2022 at USD 0.88.

At this level there is a good chance of a course reversal back north. Only if the Bitcoin price should drop more sustainably, a fall back into the orange zone between USD 0.76 and USD 0.65 is also conceivable with Optimism. Should the crypto market get under the wheels more clearly in the coming months and the Bitcoin price falls back to new lows below USD 15,500, the OP price could also continue to lose its feathers and even into the turquoise area between USD 0.58 and 0.45 yield USD. This zone is to be evaluated as the maximum target area on the underside. From the current perspective, a relapse to the all-time low of USD 0.40 is not to be expected. New entries in the case of larger price setbacks are to be favored with a view to the chart.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.92.

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