Optimism (OP) price surged by more than 7% on Sunday, reaching an intraday high of $1.61. The Ethereum Layer-2 protocol has also released 24 million OP tokens, worth $38 million, into circulation on July 30. If the bulls maintain control in the short term, the OP price could rise to $1.89.
The Optimism (OP) price saw a significant increase of over 7% on Sunday, reaching an intraday high of $1.61 at 10:30 AM ET. These gains make the Ethereum Layer-2 protocol one of the top-performing crypto assets in the last 24 hours.
According to data from CoinGecko, the daily trading volume has increased by 107% compared to the previous day, despite the Optimistic Rollup network releasing 24 million tokens on July 30.
Interestingly, on-chain data shows that Optimism’s transaction volume has recently surpassed that of Ethereum L2 Arbitrum.
OP Price Prediction After Token Release
The release of more OP tokens into circulation is part of the planned token unlocks for the cryptocurrency. The recent release added 24 million OP tokens, worth $38 million, to the circulating supply, which currently stands at 679,080,066 OP.
According to Token Unlocks, Optimism has 45 more token unlocks scheduled. How will this token release affect the price of OP?
Despite today’s token release, the native token of Optimism turned green. However, prior to the surge, downward pressure had caused the price to drop to lows of $1.44. This rejection occurred as OP/USD crossed over $1.64 on July 24.
Meanwhile, the daily chart suggests that the bulls are in control, as the Relative Strength Index (RSI) is rising and the Moving Average Divergence Convergence (MACD) indicates potential bullish strength.
The OP price is also above the 50-day Exponential Moving Average (EMA), which has acted as support in the past two weeks. If the price breaks through $1.64, the next target could be $1.89 and $2.00.
While the token release only adds 3.56% to the total supply, it is noteworthy that an increase in circulating supply often comes with a decrease in demand and price. Therefore, it is possible for the price of Optimism to turn negative.
If downward pressure resurfaces, the OP price could rely on support at $1.44 and then $1.20.
[Image: Optimism Price Chart]As the market reacts to the token release and traders assess the impact on the price, it is important to closely monitor the developments in Optimism and the wider crypto market.
Overall, the Optimism (OP) price has shown bullish momentum, but it remains to be seen how the token release will affect its long-term trajectory. Traders and investors should exercise caution and remain informed about the latest updates and market trends to make informed decisions.
