Optimism bulls remain unfazed despite 24 million OP network unlock.
Optimism bulls remain unfazed despite 24 million OP network unlock.
The Surging Optimism (OP) Price and the Future of the Blockchain Industry
The blockchain industry continues to captivate the attention of investors and enthusiasts alike, as evidenced by the recent surge in Optimism (OP) price. On Sunday, OP experienced a remarkable 7% surge, reaching intraday highs of $1.61. This surge positions the Ethereum layer-2 protocol as one of the top-performing crypto assets in the past 24 hours.
Amidst this impressive price action, it is worth noting that daily trading volume has also increased by 107% within a day, according to data from CoinGecko. Interestingly, this surge in trading volume coincides with the unlocking of 24 million OP tokens on July 30. This event, known as a token unlock, expands the circulating supply of OP and introduces $38 million worth of tokens into the market.
Notably, on-chain data reveals that Optimism’s transaction volume has recently surpassed that of other Ethereum Layer 2 protocols, such as Arbitrum. This achievement underscores the growing prominence of Optimism within the blockchain ecosystem.
The Impact of Token Unlock on OP Price
The release of additional OP tokens into circulation is part of the scheduled unlocks outlined in the cryptocurrency’s roadmap. With the recent unlock of 24 million OP tokens, the circulating supply now stands at 679,080,066 OP. However, the question remains: how will this token unlock affect the price of OP?
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Despite the token unlock, Optimism’s native token has managed a positive price performance. However, it is important to acknowledge that prior to this surge, bearish pressure had driven the price down to lows of $1.44. This decline occurred after a rejection when OP/USD touched above $1.64 on July 24.
Analyzing the daily chart, indicators suggest that bulls currently have the upper hand. The Relative Strength Index (RSI) indicator is rising, and the Moving Average Divergence Convergence (MACD) signals potential bullish strength. Moreover, OP price is currently above the 50-day Exponential Moving Average (EMA), which has acted as reliable support over the past two weeks.
If the price manages to break above the resistance at $1.64, the next targets for OP could be set at $1.89 and $2.00. On the other hand, if downside pressure resurfaces, OP’s price may rely on support levels at $1.44 and then $1.20.
In conclusion, the recent surge in Optimism (OP) price showcases the dynamic nature of the blockchain industry. The unlocking of 24 million OP tokens and the subsequent increase in trading volume signifies the growing demand and interest in the Optimism protocol. As the blockchain industry continues to evolve, the performance of OP serves as a microcosm of the market’s progress. Whether this surge is the precursor to further advancements or a temporary fluctuation, the future of the blockchain industry remains a captivating and thrilling prospect.
