Optimism OP/USD token loses another key support. What next?
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Optimism is a Layer-2 scaling solution in Ethereum
Optimism price drops amid ETH decline after long-awaited consolidation
OP, the original brand, has lost support and faces further downward pressure
Ethereum Layer-2 scaling solution Optimism OP/USD shows fewer signs of resurgence. A week after the expected Ethereum Merge, Optimism crashed by about 15%. This comes amid fading hype surrounding the post-merger gains of Ethereum-related tokens.
Don’t get it twisted though. Ethereum’s transition from Proof-of-Work to Proof-of-stake brings great benefits. These effects will be realized in the longer term, and Linked Platforms like Optimism will benefit. In the meantime, investors may have to endure a bearish market for Optimism as the token lost key support. The falling market also reflects concerns about the tightening of economies as central banks raise interest rates to curb inflation.
Optimism forecast when the token loses its grip on $1.0
Optimism token is valued at $0.922, which is below the support zone of $1. The price level means Optimism has more than halved from its August high of $2.2. This also suggests a bubble burst as it experienced a strong rally in July due to strong fundamentals.
Source – TradingView
The technical outlook shows that optimism has dipped below the 20-day and 50-day moving averages. A drop below the $1 support opens up opportunities for additional bills.
A look at the RSI shows a reading of 38. The reading indicates increased selling pressure. The token has more room to fall before we get into oversold territory. Optimism may further decline to find support at $0.74.
The sign of optimism lacks rising momentum. The token lost an important support at $1. It means we should look for cheaper prices. The next support is $0.74 due to weak sentiment.