Optimism has taken a hit this month, with a significant drop of more than 12% in the past week alone. With a market correction ongoing, investors and traders may be feeling the pain in their portfolios. However, despite the bearish action, there are still reasons to remain optimistic about Optimism.
One of the bright spots for Optimism is the growing on-chain use by an expanding user base. While the price of OP may have suffered, on-chain data tells a different story. Nansen data shows that active addresses and transactions on the platform are on the rise, indicating increased chain-wide usage across its different constituent chains. Events like the upcoming Superhack hackathon are contributing to this growth, showcasing a platform that is actively supported by a growing community.
The announcement of the Retro Funding round, with rewards of 8 million OP tokens, further boosts confidence in the platform. Analysts like Professor Astrones are showing support for OP, highlighting a potential breakthrough in the downward trend that has been observed this year. However, there are still certain factors that need to align for OP to see a return to green.
For OP bulls, the key is to wait for the perfect timing. The long-term support level of $1.694 could serve as a stable platform for a potential upward trend. However, the token’s correlation with Ethereum and Bitcoin could impact its movement in the near future. The current market correction may delay any breakout in the coming days, but strong support at $1.694 gives bulls a solid foundation for a potential upward move towards the $2.331 target level.
Overall, despite the recent bearish action, there are reasons for investors and traders to remain optimistic about Optimism. The platform’s on-chain growth, supported by events like the Superhack hackathon and Retro Funding round, indicates a strong community backing. With the right timing and support levels in place, bulls may see a resurgence in OP’s price in the near future.
