Will Optimism [OP] holders see a new bear cycle soon

Optimism’s native OP token witnessed a steep 10% drop during the August 17th intraday trading session. The decline was the result of a series of rumors that Optimism’s multi-signature wallet had been hacked.

The fear of hacking occurred after the L2 blockchain multi-signature wallet posted a suspicious move on the chain.

In early June, Optimism lost 20 million OP tokens due to a mistake between multi-signature addresses.

Given the gravity of the situation, Optimism quickly took over Twitter on the evening of August 17 to dispel the rumor.

The tweet explained to its users that OP transfers out of the multi-signature address were a series of scheduled transfers made to Coinbase Custody wallets.

As soon as Optimism cleared up the misconception, the OP token managed to show some recovery. But was it enough?

Are you still having a hard time?

Following the rapid 10% drop in the OP token price on Aug.17, the price corrected to its starting position after Optimism denied the rumor and assured investors the safety of their funds.

However, the data from CoinMarketCap revealed a substantial drop in the token price over the past two days.

As of this writing, it was trading at $ 1.18, down 11% from the hacker scare on August 12.

Additionally, the token price dropped by more than 30% in August. This drop came after the July bull run that caused the token to surge by 60%.

Things did not go well for OP on a daily chart. In the past 24 hours, its price has dropped by 12%.

Currently, trading hands at the June level, the token price is down 73.98% from its all-time high of $ 4.57.

As buying pressure eased, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted in a downtrend below the neutral 50 region.

At the time of writing, RSI and MFI were 40 and 33 respectively.

The Moving Average Convergence Divergence (MACD) also revealed that a new bearish cycle for the OP token began on August 9th.

Therefore, a further drop in prices should be expected.

Source: TradingView

It’s all downhill

Data from Coin operated terminal revealed that Blockchain L2 had seen a drop in its daily revenue over the past seven days.

As of August 17, Optimism has posted daily revenue of $ 18,000, which represents a 12% decline over the past seven days.

Over the past three months, daily network revenues have decreased by 36.7%. After posting an all-time highest daily revenue of $ 492,000 on May 12, revenue on the network has dropped.

Source: Coin operated terminal

Additionally, cumulative revenue on the network since February 23 has stood at $ 9 million. This represented a 25% revenue gap compared to Arbitrum’s $ 12 million in the same period.

Source: Coin operated terminal

Leave a Reply

Your email address will not be published. Required fields are marked *