Crypto Man MAB, in his latest analysis on X, pointed out that Optimism (OP) is now priced at $0.553, showing a mild increase of +0.004 (+0.73%) within the last four hours. While the short-term movement is slightly positive, he emphasized that the overall trend has been bearish since the asset peaked near $0.75, marking a clear phase of correction in the market. Trend And Volume Analysis OF Optimism (PO) Delving into the trend, Crypto Man MAB observed that the asset’s short-term trend is leaning bearish. Over the past 24 hours, the price of OP has declined from a high of $0.564 to a low of $0.483, forming a downward trajectory. He noted that the longer-term outlook reinforces this sentiment, as the asset has dropped by a steep 71.02% over the last 180 days, clearly signaling sustained downward pressure. Related Reading: Aave Address Count On Optimism Rapidly Growing, Will Price Rise To New 13-Month High? Turning attention to volume behavior, Crypto Man MAB emphasized the significance of recent spikes in OP’s trading volume, particularly during the sharp price decline. He explained that this increase in volume often indicates heightened market participation, most likely driven by panic selling or stop-loss triggers. The volume surge during this dip suggests that the bears are still active and in control. In his analysis, Crypto Man MAB further mentioned that the Volume SMA reflects periodic surges, with the most recent peak aligning with the downward movement in price. This alignment between rising volume and falling price often reflects a strong bearish sentiment, reinforcing the downward pressure seen on the chart. Support, Resistance, And Indicators Examining OP’s support and resistance levels, the analyst points out that the current price is trading near $0.483. This zone could act as a potential support if selling pressure begins to slow, offering a chance for a temporary stabilization or bounce. However, a sustained break below this level might signal further downside in the near term. Related Reading: Optimism (OP) Faces Potential Decline To $1.80 — Analyst On the flip side, the nearest resistance lies around $0.564, which represents the 24-hour high. If the price attempts a recovery, this level will likely serve as the first barrier to overcome. A successful move above it could signal improving sentiment, though further confirmation would be needed to shift the short-term bias away from bearish. Looking at the chart patterns, recent candlesticks show a mix of bullish and bearish activity, but the red candles have been more dominant. This pattern reinforces the ongoing downward momentum, indicating that sellers still have control. Until there is a visible shift in momentum, the overall tone remains cautious despite pockets of potential support. Featured image from YouTube, chart from Tradingview.com
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According to the latest Binance Research report, the Ethereum (ETH) issuance rate continued to rise in September 2024, raising concerns about the digital asset’s “ultrasound money” claim. Ethereum Issuance Rate Continues To Surge In its October 2024 Monthly Market Insights report, Binance Research highlighted that the ETH issuance rate continued its ascent in September, moving away from its previously deflationary status. Related Reading: Is Ethereum Primed For Surge? Analyst Reveals Key Levels to Watch For A $8,100 Rally The second largest digital asset by reported market cap had a 30-day annualized inflation rate of approximately 0.74%, a level not observed in the last two years. The sharp uptick in ETH supply inflation has questioned its “ultrasound money” positioning. Interestingly, the term “ultrasound money” draws inspiration from Bitcoin’s (BTC) “sound money” narrative. While BTC’s supply is capped at 21 million, ETH’s supply can become deflationary, theoretically increasing scarcity and protecting it from inflation-driven erosion of purchasing power. Ethereum’s high issuance rate could be attributed to several factors, including low mainnet on-chain activity, leading to a low transaction fee and, consequently, lower ETH burn rates. In 2021, Ethereum core developers implemented EIP-1559, which introduced a fee-burning mechanism that aimed to reduce ETH’s circulating supply, thereby creating deflationary pressure on the token. However, with declining mainnet activity, the amount of ETH being burned is lagging behind the ETH issuance rate, leading to a net inflationary trend. Notably, September 2024 experienced one of the lowest ETH burn rates since the highly anticipated Merge event, when Ethereum transitioned from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. Ethereum Layer-2 Solutions To Blame For Low ETH Burn Rate? The report points to March 2024 as the starting point of Ethereum’s inflationary trend, following the implementation of EIP-4844 or the Dencun upgrade, which reduced transaction costs on layer-2 scaling platforms such as Optimism (OP), Arbitrum (ARB), Base, and Polygon (MATIC). The report adds: As L2s cannibalized network activity throughout the year – further impacted by broader market conditions – transaction fees and, consequently, burned fees on Ethereum declined, with September recording one of the lowest levels since the Merge. This has prevented ETH from decreasing in supply to remain deflationary, leading to the net positive daily supply changes we now see. Recent trends corroborate the assertion above, as network activity on layer-2 solutions grows across different metrics. For instance, a report in July 2024 noted that daily active addresses and transaction volume on Polygon had soared significantly. Related Reading: Ethereum Solo Staking Made Easier? Vitalik Buterin Supports Lower Entry Requirements Similarly, decentralized finance (DeFi) activity on Arbitrum increased earlier this year when decentralized exchange (DEX) Uniswap surpassed $150 billion in total swap volume on the network. Another report found that over 48% of digital assets bridged from the Ethereum network end up on Arbitrum, indicating users’ high trust in the layer-2 network’s robust security and reliability. ETH trades at $2,385 at press time, up 1.7% in the past 24 hours. Featured image from Unsplash, charts from Binance Research and Tradingview.com
OP, the native token of Optimism, broke out of an uptrend after setting a new all-time high of $4.87. The price has continued to drop since then, and currently points to a continuous downward drop. Analysis of the crypto asset’s trend indicates that the price is on a downtrend which is currently trading below the […]