Optimism price has rocketed by 15%: Will it retest $2 soon?

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Optimism price has rocketed by 15%: Will it retest $2 soon?

By Crispus Nyaga - min read
  • Optimism price has risen by about 15% in the past 24 hours.

  • Its DeFi TVL has crashed to $674 million from over $2 billion.

Optimism price has darted higher as investors react to the relatively positive news in its ecosystem. It has risen in the past three straight days and is hovering at the highest level since November 8 of this year. OP has risen by more than 180% from the lowest level this year.

Latest Optimism news

Optimism is a leading layer-2 network that supercharges applications. It is a Polygon and Arbitrum rival that has superior speeds and low transaction costs. The network has been used by leading projects like Perpetual Protocol, Uniswap, Aave, Synthetic, and Velodrome among others.

Optimism, like other smart contract platforms like Ethereum, BNB, and Solana, it has seen the total value locked (TVL) crash in the past few months. Its TVL has clashed to a low of $674 million from its all-time high of more than $2.6 billion.

OP price has risen slightly after the network announced the Retroactive Public Goods Funding with $10 million. These funds will come from the Optimism Treasury and the network revenue. The second part of the funding will take place in the first quarter of 2023. These funds will be distributed to the people and projects that power public goods that make Optimism possible.

Another important Optimism news was that Coinbase will now make it possible for eligible users to send and receive ETH, DAI, and WBTC on Optimism. The on-ramp product has been embraced by some of the biggest companies in the industry. 

Some of the top exchanges using the product are Coinbase, Binance, Moon Pay, Binance Connect, and Bitget among others. Optimism price also reacted to the recent introduction of Optimism Stack. 

The main challenge for OP price will be the rising competition from Arbitrum. Arbitrum is a layer-2 network that has gained strong traction recently. Its TVL has soared to more than $1.7 billion, making it the 5th biggest smart contract in the world.

Optimism price forecast

OP/USD chart by TradingView

The daily chart shows that the OP price has been in a strong bullish trend in the past few weeks. It has moved above the 25-day and 50-day moving averages and the ascending trendline shown in black.

Optimism’s Relative Strength Index (RSI) has moved above the neutral point of 50. Therefore, the coin will likely continue rising as buyers target the key resistance at $$1.50. A drop below the support at $1 will invalidate the bullish view.

How to buy Optimism