Optimism Price Prediction: Will OP Rebound?

Key Insights:

• The OP token has fallen by over 11% in the last 24 hours. 
• Short-term sentiment on OP is bearish. 
• The coin remains over 83% below its all-time high price set in May this year. 

OP, the native token of the Optimism ecosystem that gives users participation rights to the two-tier governance system, has fallen by over 11% in the last 24 hours.

Despite the coin reaching the $0.9 mark on July 23, OP has plummeted to $0.7539 today – a 21% drop in just three days.

Optimism (OP) is a Layer 2 protocol and smart contract platform that aims to enable low-cost and near-instantaneous transactions. The OP cryptocurrency powers the Token House which governs network parameters, treasury disbursements and protocol upgrades.

Price Action

The OP token started its journey at $0.9199 on May 31, 2022. Interestingly, the coin reached its all-time high (ATH) price that same day at $4.57. OP quickly surged to the $1 mark, reaching $1.8481 on June 1.

As the crypto market crashed, OP’s price retreated, dropping to $0.7284 on June 9 and falling even further to $0.5045 by June 13.

 

During this month, the entire crypto space was still reeling from Terra’s collapse – a project that went from being valued at more than $50 billion to collapsing into a state of disrepair in the span of a week. More specifically, when the algorithmic stablecoin UST lost its peg to the U.S. dollar and the price of LUNA dropped 98%, it fuelled a slump across cryptocurrencies.

As such, OP fell to its all-time low of $0.4005 on June 18. Following this, the token stagnated and stayed within the $0.4-$0.5 range until this month when it climbed to $0.6316 on July 18. Another brief rally saw OP rise to $0.9388 on July 23 when its market capitalisation registered a 59% increase from $124.98 million to $199.71 million in seven days.

However, the coin is currently at trading at $0.753852 and is down 11.38% in the last 24 hours. OP ranks 2765th in the list of cryptocurrencies worldwide by market capitalisation at $164 million and remains over 83% below its all-time high price recorded in May this year.

 

Technical Indicators

Technical analysis shows that short-term sentiment on OP is bearish, with 6 indicators displaying bullish signals compared to 12 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving a combination of buy and sell signals, while the relative strength index (RSI) stands at 58.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of an Optimism crypto price prediction, OP could see its price rising to $0.8070 by August 2022, falling to $0.0236 in January 2024 and reaching $0.0244 by January 2025.