The optimism token has been experiencing a downward trend in July, with a significant drop of more than 12% since last week, according to Coingecko. Despite this bearish action, there are reasons for investors and traders to remain optimistic about the future of Optimism. One of the key factors contributing to this optimism is the growing on-chain use by an expanding user base. Data tracked by Nansen shows a boom in on-chain growth for Optimism, with active addresses increasing along with transactions, indicating widespread usage across its various chains.
In addition to the on-chain growth, Optimism has announced various events that have contributed to the increase in active addresses on the platform. This includes hosting a chain-wide hackathon on July 31, showcasing the platform’s positive growth and potential for development with the support of a growing community. The organization has also announced a Retro Funding round, rewarding projects based on three different categories, with a total reward of 8 million OP tokens to help winning projects increase their impact on-chain.
Despite the bullish sentiment among analysts like Professor Astrones, who support OP as it breaks through its downward trend, there are still challenges that need to be addressed for Optimism to see positive growth. One of these challenges is the token’s high correlation with Ethereum, meaning that movements in Ethereum can impact the price of OP. Investors and traders should be cautious in their expectations for a breakout in the coming days due to the current market correction, although $1.694 provides strong support for potential upward movement.
For OP bulls, it is essential to wait for the perfect timing to capitalize on the stable platform for an upward rocket movement. If the long-term support level of $1.694 holds strong, the target level for bulls will be $2.331. However, losing this position could result in more pain in the short term. The indirect correlation with Bitcoin could also impact how the token moves in the future. Overall, while there are challenges ahead, the potential for growth and development on the Optimism platform remains promising for investors and traders.
