The optimism price has dropped by 5.5% in the past 24 hours, reaching $2.77 in the context of a 0.5% dip for the cryptocurrency market as a whole. However, the altcoin remains up by 7% in a week and by 27% in the last 30 days, buoyed by the news Coinbase will be launching its own layer-two network for Ethereum using Optimism-based technology.
While the short-term rally following from this news has now died down, the medium- and long-term prospects for OP remain very good. Coinbase’s use of Optimism’s open-source OP Stack for developing Base, its layer-two sidechain, will boost the Optimism ecosystem significantly in the coming months, helping to boost OP’s price in parallel.
Optimism Price Prediction – OP Pulls Back From ATH But $10 is Still in View
OP’s indicators would suggest that a selloff is indeed due in the short-term, with the coin looking a little overbought at the moment. For instance, its 30-day moving average (red) has climbed much, much higher than its 200-day average (blue), signalling that a reversal is due soon.
Likewise, OP’s relative strength index (purple) has begun sinking towards 50, after having spent much of the year above 70. In other words, it had been somewhat overbought in recent weeks, and now its price may fall for a short period, until its RSI bottoms out.
A key support level to watch out for is $2.70. If OP falls decisively below this, it may continue to fall further, although its recent momentum suggests that it should just about hold out.
Indeed, recent events suggests that OP could end up becoming one of the most profitable tokens of 2023. Most notably, Coinbase’s announcement this week of its Base layer-two network is a humongous win for Optimism, with the US-based exchange now joining the platform’s ecosystem as its second core developer.
As explained in a blog accompanying Coinbase’s announcement, the exchange’s joining of the Optimism ecosystem means that it doesn’t see Base as a rival to the older layer-two, but as an addition to what will become an interoperable ‘superchain.’ It wrote the following:
That’s why we are working with OP Labs and the Optimism Collective on a plan to scale Ethereum in a decentralized way. Our vision is to create a robust developer ecosystem of interoperable L2s and rollups that will help onboard the next billion users into web3.
As such, the use of core Optimism code means that many of the dApps that launch on Base are also likely to be compatible with Optimism. This basically means that Coinbase and its developers are working on growing Optimism now, even if Base ends up becoming bigger than the older layer-two network.
It’s also encouraging to note that many developers and platforms have affirmed their support for Base, with various partners already announced. This effectively means more support and more partners for Optimism, given Coinbase’s aforementioned commitment to interoperability.
It’s also worth pointing out that Optimism was already an important layer-two network for Ethereum prior to Coinbase’s announcement, with its total value locked in expanding by around 97% since January 1, to $989 million.
Because Optimism was already established, Coinbase’s entery into its ecosystem is only going to help it reinforce and strengthen its position. Consequently, expect OP to rise steadily in the coming months.
While its price may correct more in the coming days, its even stronger fundamentals will help it recover soon enough. Expect its price to reach a new all-time high in the coming weeks, rising beyond $3.22 and reaching $4 in the next few months.
From there, OP may rise even higher if the wider cryptocurrency market continues to enjoy a steady recovery, with some ambitious holders targeting $10.
Is Now A Good Time to Buy Optimism?
While the longer term picture now looks very good for Optimism, it may suffer a few more losses in the shorter term. As a result, traders looking for quicker gains may prefer to consider other high-potential cryptocurrencies. We’ve therefore put together a list of the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
