Optimism (OP) Climbs Over 10% On Weekly Chart, Will The Rally Final?

Following a slight enchancment within the broader cryptocurrency market, Optimism (OP) has posted constructive good points as we speak, August 2. The token is now over 10% increased than seven days in the past. Optimism’s acquire has positioned it among the many top-gaining cash as we speak, with an almost 3% acquire within the final 24 hours. 

Optimism Value Motion as Bulls Battle to Prevail

In keeping with CoinMarketCap data, Optimism peaked at $1.6712 on Wednesday morning, an over 5% improve from its past-day value. Nevertheless, because of the intense wrestle between the consumers and sellers, OP has receded from the day peak and is now traded at $1.63, with a 3.08% value improve.

Associated Studying: Shiba Inu Value Prediction: Is Shibarium The Key To A Pattern Reversal?

Optimism maintained a reasonably bullish momentum from July 13 to August 2, mirrored in its over 22% 30-day value improve. Whereas the uncertainty about its subsequent value motion stays excessive, speculations recommend the next developments would possibly affect the OP’s market outlook within the coming days.

Optimism May Face Backlash Due To The Current BASE Exploit

Coinbase’s newly launched BASE community constructed on the Optimism Stack reportedly witnessed a backdoor contract exploit, resulting in the lack of 597 Ether value roughly $1 million. 

In keeping with on-chain investigations, the exploiters infiltrated a BASE Chain’s backdoor contract, constantly minted tokens, and bought them for revenue. Knowledge exhibits that the perpetrator tackle already minted 40 completely different tokens, producing roughly 597 Ether in revenue, which has been moved out.

Speculations are that the exploit would possibly affect all protocols linked to it, together with the Optimism community, since BASE anchors the OP Stack. Additionally, the BASE hype attracted a number of new crypto addresses to the Optimism community. The current hack could depress investor sentiment, doubtlessly impacting OP’s value.

The variety of lively addresses on the Optimism community grew considerably over the previous couple of months after BASE’s launch in late February. Nevertheless, this development might be stalled because of the unlucky occasion on the BASE community.

OP Value Outlook; Will the Bulls Maintain the Rally?

The OP/USD each day chart demonstrates OP’s bullish momentum because the bulls battle to safe increased market positions for the coin. OP has surpassed its two essential help ranges, and the bulls present no signal of stopping, evident within the brief inexperienced candlesticks fashioned above the $1.631 help stage.

The Transferring Common Convergence/Divergence is above the sign line with inexperienced histogram bars that mirror the asset’s bullish momentum. As well as, the RSI has crossed the overbought area and now sits at 75, demonstrating elevated shopping for strain on OP. 

Nevertheless, a bearish development reversal is feasible because the consumers have reached saturation and should recede resulting from a decline in momentum. 

As of the time of writing, OP trades at $1.63. However the subsequent few hours are essential as the value might decline to $1.61 if the bears reclaim management.

Featured picture from Pixabay and chart from TradingView.com