Following a slight enchancment within the broader cryptocurrency market, Optimism (OP) has posted optimistic good points at the moment, August 2. The token is now over 10% greater than seven days in the past. Optimism’s acquire has positioned it among the many top-gaining cash at the moment, with an almost 3% acquire within the final 24 hours.
Optimism Price Action as Bulls Struggle to Prevail
According to CoinMarketCap data, Optimism peaked at $1.6712 on Wednesday morning, an over 5% improve from its past-day worth. However, 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% worth improve.
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Optimism maintained a reasonably bullish momentum from July 13 to August 2, mirrored in its over 22% 30-day worth improve. While the uncertainty about its subsequent worth motion stays excessive, speculations counsel the next developments would possibly affect the OP’s market outlook within the coming days.
Optimism Could Face Backlash Due To The Recent 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.
According to on-chain investigations, the exploiters infiltrated a BASE Chain’s backdoor contract, repeatedly minted tokens, and bought them for revenue. Data exhibits that the perpetrator deal with already minted 40 totally 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. Also, the BASE hype attracted a number of new crypto addresses to the Optimism community. The latest hack could depress investor sentiment, doubtlessly impacting OP’s worth.
The variety of lively addresses on the Optimism community grew considerably over the previous few months after BASE’s launch in late February. However, this development may very well be stalled because of the unlucky occasion on the BASE community.
OP Price Outlook; Will the Bulls Sustain the Rally?
The OP/USD every day chart demonstrates OP’s bullish momentum because the bulls struggle to safe greater market positions for the coin. OP has surpassed its two vital assist ranges, and the bulls present no signal of stopping, evident within the quick inexperienced candlesticks fashioned above the $1.631 assist stage.
The Moving Average Convergence/Divergence is above the sign line with inexperienced histogram bars that replicate the asset’s bullish momentum. In addition, the RSI has crossed the overbought area and now sits at 75, demonstrating elevated shopping for strain on OP.
However, a bearish pattern reversal is feasible for the reason that consumers have reached saturation and should recede as a result of a decline in momentum.
As of the time of writing, OP trades at $1.63. But the following few hours are vital as the worth might decline to $1.61 if the bears reclaim management.
Featured picture from Pixabay and chart from TradingView.com
