Huge Surge in OP Crypto Trading Volume; Can It Be A Reliable Bet?

• In the last 24 hours, the OP crypto trading price has increased by 22%.
• The Optimism crypto price is following a strong uptrend on the weekly charts.

Optimism (OP) is a layer-two platform on Ethereum, utilizing optimistic rollups for enhanced scalability and accessibility of decentralized applications (dApps). Introduced in 2019, it allows low-cost, quick Ethereum transactions by batching and settling multiple transactions on a separate layer. Created by developers Ethan Frey and James Ray, OP facilitates the development of diverse dApps.

As per Coingecko, the market cap dominance of the OP crypto is 0.113%, resulting in a market cap rank of #43. The volume/market cap ratio of the crypto is 0.2625. Furthermore, the market cap of the crypto has declined by 0.94% in the last 24 hours.

Additionally, the spot trading volume for the Optimism Coin has advanced by 32.13%, resulting in $522.84M. This phenomenon has resulted in a ranking of 18th in terms of trading volume, as per CoinMarketCap.

Optimism Volume Comparison

WIth the increase in the trading volume of the OP crypto, the total value locked is also increasing. This represents a strong presence of active users.

OP Crypto Technical Analysis

After facing a decline in the price for more than 100 days, the OP crypto formed a strong dynamic trendline facing resistance at the same level. By looking at the most recent price action, it can be seen that the price has broken above the same dynamic level. This behavior in the price shows that the buyers are dominating the trend.

Based on the smart money concept, the OP crypto price is following a strong uptrend and making a higher high pattern on the charts. The price has broken above the strong change of character level of $1.8. Moreover, the price is sustaining above this level, indicating the strong presence of buyers in the market.

The RSI shows strength as it is above the 50-level. It has hit the overbought zones, indicating a bullish trend.

Conclusion

OP, a Layer-2 scaling solution for Ethereum, has shown a bullish breakout from a long-term downtrend. The price has surged by over 100% and the RSI is positive. OP has a high trading volume and a growing total value locked, indicating a strong demand and adoption. Thus, the price might continue to rise to higher levels in the future.

Technical Levels 

• Support levels– $1.500 and $1.650
• Resistance levels– $2.900 and $3.200

Disclaimer

The views and opinions stated by the author or any other person named in this article, are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.