- Optimism Token is up almost 100% in a week
- Positive developments are boosting the token in July
- Investors should buy on retracements
Investor interest is back on Ethereum Layer-2 Scalping Solution Optimism. The coin has gained over 98% over the past week. Of course, this underscores the benefits that other Ethereum-based tokens are experiencing. Cryptocurrencies like Ethereum Classic have also been top gainers. Nonetheless, a further test of optimism shows that the underlying fundamentals have bounced back.
On July 26, Optimism announced the launch of Drippy. Drippy is a trust-minimum conditional trading system from Ethereum. This will allow users to transact after the prescribed conditions. Optimism hopes that the system will solve the automation issues that will enhance the performance of the blockchain.
The integration follows another positive development on 24 July. Curve Finance had announced a grant proposal that would increase liquidity on optimism. The move is expected to allow one million optimism tokens to be distributed on the Curve Pool. Liquidity providers will be incentivized with OP tokens.
OP Token is getting a boost from the events of July. But for an investor, is the coin attractive now or is the bubble about to burst?
Optimism trades higher but faces immediate resistance
Source – TradingView
While the recent developments are positive for OP, the current price could be volatile. The RSI is pointing to overbought conditions, and a correction is more likely. We recommend investors to buy on retracements. The coin could potentially drop to $1.45 as it is already facing resistance at $1.88.
closing thoughts
The latest developments add to the usefulness of the optimism token. At current valuations, investors should consider buying short as corrections are more imminent. A potential support area is at $1.45.