John Isige
Optimism price is back in the limelight at the time the crypto market is dealing with regulatory pressure from the United States. Regulators in the greenback nation have vowed to increase their oversight of the industry in the wake of the messy implosion of FTX exchange.
However, Optimism bulls have been given a new lifeline following the debut of Coinbase’s Base on its network. This vital development coincided with an upgrade that is elevating Optimism to the superchain status.
Meanwhile, Optimism price is trading 15% higher on the day and holding slightly above $3.00. The growing investor interest in OP has been reflected by a 70% increase in overhead pressure to more than $1 billion.
This spike in volume suggests investors are willing to accumulate OP ahead of another significant move to the upside. Optimism now ranks 73rd position in the crypto market and boasts an 11.85% increase in market cap to $718 million.
Coinbase’s Ethereum L2 Protocol Launched On Optimism
The Optimism team is pleased to welcome Coinbase’s Base protocol to the ecosystem. Base is an Ethereum layer 2 blockchain offering “a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps.” Coinbase intends to tap the efficiency of Base to onboard over 1 billion users into the crypto economy.
Coinbase has no intentions to launch a dedicated token to power the Base protocol. Base stands out for its strong backing, starting with security – provided by Ethereum, it is empowered by Coinbase – one of the largest cryptocurrency exchanges in the market and will remain open source with Optimism.
Coinbase intends to make Base the main on-chain platform for its ecosystem. It would be “an open ecosystem where anyone, anywhere, can build dapps that reach the next 1B+ users.” Think of it as a bridge that shortens the user onboarding process to crypto. From Base, users will go anywhere, including to L1 and L2 ecosystems such as Bitcoin, and Solana.
Base caters to decentralization needs in the crypto economy by ensuring it stays open and accessible to everyone. “To accelerate our decentralization, we’re building Base on the open-source OP Stack to create an interoperable superchain with,” Coinbase reaffirmed. Base will also allow people to mint NFTs, with the first being “Base-Introduced,” which can be minted for free on ZORA until Sunday at midnight EST.
Optimism Price Technical Outlook – How Far can OP Go?
Optimism price holds marginally above 3.00 after exploding 15% on the day. Before this uptick in price, OP’s uptrend stalled at $3.22, which saw the token give back gains toward $2.00.
Declines could have skyrocketed if it were not for the 50-day Exponential Moving Average (EMA) (line in red). Note that, Optimism has sustained a bullish outlook from the beginning of the year possibly with the support of a golden cross.
From the chart above, the 50-day EMA validated two consecutive golden cross patterns as it flipped above the 100-day EMA (line in blue) and the 200-day EMA (line in purple). Investors buying OP now may rest easy now that moving averages on the daily chart uphold the uptrend.
A daily close above $3.00 will likely keep investor interest in the market intact, considering a buy signal beckoning from the Moving Average Convergence Divergence (MACD) indicator.
Notice the MACD line in blue crossing above the signal line in red. It would be prudent for investors to buy as long as Optimism price holds above $3.00 and the MACD line completes the buy signal.
On the downside, short positions taken in OP would start turning profitable if Optimism price slides and sustains movement below $3.00. In that case, sellers may want to cash put at $2.50, the support highlighted in the lower yellow band.
A break and hold above $3.00 may trigger FOMO among investors. As momentum builds behind OP, the path with the least resistance would stick to the upside, as Optimism price stretches the leg to another new all-time high.
Optimism Alternatives To Buy Today
Before you buy OP, you may want to consider some of the best altcoins to buy for 2023. We have a dedicated team that reviews the best crypto presales to buy, especially for investors looking at diversifying their crypto portfolios.
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This article was written for Business 2 Community by John Isige.
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