Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

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As a seasoned crypto investor with years of experience under my belt, I have witnessed numerous market corrections and bull runs, and I must say, this week has been particularly challenging for those holding Optimism (OP). With the token down more than 12% since last week, it’s hard not to feel the pinch. However, as a wise investor once told me, “Never let emotions dictate your investment decisions.”

1) Since the beginning of this month, optimism regarding a particular investment seems to have dwindled significantly. However, this past week has proven especially challenging for both investors and traders, as the value of the associated token has dropped by over 12% according to Coingecko, compared to its value from last week.

1. As the market experiences correction, it’s important to note that existing portfolios holding OP might face further challenges. Nonetheless, here are some compelling reasons for investors and traders to remain optimistic about Optimism:

Growing On-chain Use By An Expanding Userbase

As a crypto investor, I’ve observed that the price of OP has taken a significant hit over the past month due to bearish market conditions. However, delving into the on-chain data reveals a starkly contrasting picture.

Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

Based on data collected by Nansen, there’s a significant surge in on-chain development for Optimism. As the self-proclaimed “Superchain” within Ethereum, its growth is evident as active addresses and transactions are consistently increasing, suggesting widespread usage across its various sub-chains.

The platform has also announced several events that potentially impacted this on-chain growth.

Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

1. Tomorrow, July 31, Optimism is organizing a chain-wide hackathon, which has led to an uptick in active addresses on their platform. This event will likely counteract any fluctuations in investor confidence and demonstrate that Optimism is a thriving development environment backed by a steadily expanding community.

Superhack is a Superchain wide hackathon.
Sign up and check out bounties from teams like @worldcoin @base @modenetwork @Celo and more!
Details via link in @ETHGlobal‘s bio.
Apply before July 31.
— Optimism (@Optimism) July 26, 2024

1. Option: The organization has declared the upcoming Retro Funding cycle, focusing on three main areas of interest: Ethereum core advancements, research and development within the OP stack, and enhancement of OP stack tools. Winners in these categories will receive a total of 8 million OP tokens, enabling them to amplify their influence on the blockchain even more.

$OP
PUMP THIS SHIT
— ProfessorAstrones (@Astrones2) July 24, 2024

1. The presented data boosts optimism among analysts such as Professor Astrones, reinforcing their bullish view towards OP. This is because they observe that the token has managed to surpass the bearish trend it’s been in since the start of this year.

Despite maintaining a strong faith in the platform and its token, certain events must transpire for OP to experience gains again.

Bulls Should Wait For The Perfect Timing

Currently, the upward trajectory for OP bulls appears robust and steady, with a strong foundation resembling a launchpad. It’s important to acknowledge that the long-term support level for this upward trend lies at $1.694.

Optimism Drops 12%: Should Investors Still Be Optimistic? These Metrics Say Yes

Despite their strong connection, the high degree of synchronization between Bitcoin and Ethereum raises concerns. When one suffers, the other often follows suit. The indirect relationship between Bitcoin and the token in question could significantly influence its future price trends.

In light of the ongoing market adjustment, it would be prudent for investors and traders to temper their hopes for significant gains in the near term. Nevertheless, the solid foundation at $1.694 offers the buying side some reassurance and a firm base from which to mount a potential recovery.

If the bulls are unable to maintain their current position, be prepared for potential suffering in the near future. However, if they manage to keep this level steady, $2.331 will serve as their next objective.

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2024-07-30 12:05