OP token price rises by more than 200%, now what ? - Rvpg media

OP token price rises by more than 200%, now what ?

Here the twist about what comes after L2 solution Optimism’s token (OP) price rally

Optimism logo

Against the overall bearish sentiment in the market, OP’s price successfully managed to pump over 200% during July and till this moment.

So now the price is expected to drop, which is most likely to happen, but here’s the twist, following the slight price drop an upcoming nice pump to the upside in a fairly not so long period of time is anticipated.

OP price chart
OP/USDT daily price chart showing a cup and handle formation, Source: TradingView

Taking a look at the daily price chart of OP a cup and handle pattern can’t help but be noticed indicating that the price still have more to go.

However, the relative strength index (RSI) indicator shows that the token is in the overbought area forecasting an upcoming reversal, still this won’t affect the likelihood of the cup and handle formation to play out as long as the price doesn’t drop below the handle low, so even a price drop by a little over 25% won’t affect this scenario, as a matter of fact a small cool down can be healthy for the price movement to regain momentum and resume its rally up.

Currently the most anticipated event in the Crypto World is Ethereum’s “The Merge” event September 19th, click here to learn all about it.

After The Merge the next step for Ethereum is the sharding upgrade which will enable rollups, Ethereum’s currently preferred layer 2 solution for scalability, to be cheaper than they already are and eventually scale throughput (higher transactions per second) all while leveraging the security of Ethereum.

And OP being the governance token for Optimism (the second leading Ethereum Layer-2 solution which is also a rollup) is expected to pump since The Merge happening is like a confirmation that it’s a matter of time till the sharding upgrade.

This scenario being so bullish for OP token future price there are some bearish signs that need to be taken into consideration.

First, the current overall sentiment of the market is bearish which reduces the success rate of this formation.

Second, the cup and handle pattern we have is a higher right lip cup type which has lower performance rate than a higher left lip cup type.

And last, Ethereum developers can at any moment announce a delay of The Merge which won’t be surprising yet the market would react to it in a bearish manner.

  • **THIS BLOG POST IS JUST AN OPINION, THIS IS NOT A FINANCIAL ADVICE OR AN ADVICE OF ANY TYPE, ALL THE INFORMATION USED WAS FOUND PUBLICLY ON THE INTERNET!

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