Optimism (OP) Coin Sees Positive Gains, Despite Market Struggle
After a slight improvement in the broader cryptocurrency market, Optimism (OP) has seen positive gains on August 2nd. The token is now over 10% higher than it was seven days ago. The increase in Optimism’s value has made it one of the top gainers, with an almost 3% increase in the past 24 hours.
According to CoinMarketCap data, Optimism reached its peak at $1.6712 on Wednesday morning, a rise of over 5% compared to the previous day’s price. However, due to the intense battle between buyers and sellers, OP has fallen from its daily high and is now trading at $1.63, representing a price increase of 3.08%.
The optimism has maintained a bullish momentum from July 13th to August 2nd, reflecting a price increase of over 22% within 30 days. While uncertainty about the next price action remains high, speculations suggest that the following developments could influence OP’s market outlook in the coming days.
Optimism may face backlash due to the recent BASE exploit
Reports suggest that there was a backdoor contract exploit on Coinbase’s newly launched BASE network, which is based on the Optimism stack. This exploit led to the loss of 597 Ethereum, worth approximately $1 million.
According to on-chain investigations, the attackers infiltrated the BASE chain and closed the backdoor contract, continuously minting tokens and selling them for profit. Data shows that the perpetrator’s address has already minted 40 different tokens, generating a profit of around 597 Ethereum, which was withdrawn.
Speculations suggest that the exploit could affect all associated protocols, including the Optimism network, as BASE anchors the OP stack. Furthermore, the hype surrounding BASE attracted several new crypto addresses to the Optimism network. The recent hack could dampen investor sentiment and potentially impact the price of OP.
The number of active addresses in the Optimism network has significantly increased in recent months following the launch of BASE in late February. However, this growth could stall due to the unfortunate event in the BASE network.
OP price outlook: Will the bulls maintain the rally?
The OP/USD daily chart shows the upward momentum of OP as bulls struggle to secure higher market positions for the coin. OP has surpassed its two critical support levels, and the bulls show no signs of stopping, evident from the short green candles formed above the $1.631 support level.
The moving average convergence/divergence is above the signal line, with green histogram bars reflecting the asset’s upward momentum. Additionally, the RSI has exceeded the overbought territory and is now at 75, indicating increased buying pressure on OP.
However, a bearish trend reversal is possible as buyers may reach saturation and retreat due to diminishing momentum.
At the time of writing this article, OP is trading at $1.63. However, the next few hours are crucial, as the price could fall to $1.61 if bears regain control.
Image source: Pixabay, Chart by TradingView.com