Optimism (OP) Climbs Over 10% On Weekly Chart, Will The Rally Final?

Following a slight enchancment within the broader cryptocurrency market, Optimism (OP) has posted optimistic positive aspects at the moment, August 2. The token is now over 10% larger than seven days in the past. Optimism’s achieve has positioned it among the many top-gaining cash at the moment, with a virtually 3% achieve within the final 24 hours. 

Optimism Worth Motion as Bulls Wrestle to Prevail

In response to CoinMarketCap data, Optimism peaked at $1.6712 on Wednesday morning, an over 5% enhance from its past-day worth. Nevertheless, because of the intense battle between the patrons and sellers, OP has receded from the day peak and is now traded at $1.63, with a 3.08% worth enhance.

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Optimism maintained a reasonably bullish momentum from July 13 to August 2, mirrored in its over 22% 30-day worth enhance. Whereas the uncertainty about its subsequent worth motion stays excessive, speculations counsel the next developments would possibly affect the OP’s market outlook within the coming days.

Optimism Might Face Backlash Due To The Latest BASE Exploit

Coinbase’s newly launched BASE community constructed on the Optimism Stack reportedly witnessed a backdoor contract exploit, resulting in the lack of 597 Ether value roughly $1 million. 

In response to on-chain investigations, the exploiters infiltrated a BASE Chain’s backdoor contract, repeatedly minted tokens, and offered them for revenue. Knowledge reveals that the perpetrator deal with already minted 40 completely different tokens, producing roughly 597 Ether in revenue, which has been moved out.

Speculations are that the exploit would possibly impression all protocols linked to it, together with the Optimism community, since BASE anchors the OP Stack. Additionally, the BASE hype attracted a number of new crypto addresses to the Optimism community. The latest hack might depress investor sentiment, doubtlessly impacting OP’s worth.

The variety of lively addresses on the Optimism community grew considerably over the previous couple of months after BASE’s launch in late February. Nevertheless, this progress may very well be stalled because of the unlucky occasion on the BASE community.

OP’s worth presently hovers at $1.63 within the each day chart. | Supply: OPUSD worth chart from TradingView.com

OP Worth Outlook; Will the Bulls Maintain the Rally?

The OP/USD each day chart demonstrates OP’s bullish momentum because the bulls battle to safe larger market positions for the coin. OP has surpassed its two important help ranges, and the bulls present no signal of stopping, evident within the quick inexperienced candlesticks fashioned above the $1.631 help degree.

The Shifting Common Convergence/Divergence is above the sign line with inexperienced histogram bars that replicate the asset’s bullish momentum. As well as, the RSI has crossed the overbought area and now sits at 75, demonstrating elevated shopping for strain on OP. 

Nevertheless, a bearish development reversal is feasible for the reason that patrons have reached saturation and should recede attributable to a decline in momentum. 

As of the time of writing, OP trades at $1.63. However the subsequent few hours are important as the worth may decline to $1.61 if the bears reclaim management.

Featured picture from Pixabay and chart from TradingView.com

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