Should you buy Optimism (OP) as token tests support

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Optimist (OP) remains in a bullish market. The coin tested the monthly high resistance of $1.37, although it is not cooling down. However, its trading volume increased by 54% on the previous day to $355 million. Blockchain is recording important trading activities.

Data from Dafilama shows a significant increase in the TVL of optimism over the past three months, reaching a peak of $1.15 billion in August. The growth can be attributed to developers looking for scalability in Ethereum.

Optimism is a layer-2 blockchain Ethereum For the purpose of scalability of decentralized applications. The platform launched its testnet in September 2020. Its native OP token allows end users to access dApps on Ethereum cheaply. Optimism is also useful in the OP regime by giving voting rights to the holders in the collective.

The current price dynamics of OP Token are not tied to anything specific in the industry. However, the fundamentals of scalability have potential for growth. In particular, the optimism rollup, which wraps transactions into one, could popularize layer-2 platforms.

OP returns to support at $1 amid strong momentum

Source: TradingView

The daily technical chart above shows that the OP is retesting support near $1 or so. The coin seems to have recovered slightly below the $1 level, although we need further confirmation. The closing of the daily candle will confirm whether a bearish breakout has occurred or not. On the upside, immediate resistance lies at $1.4, while $1.9 is a long-term resistance.

The MACD is looking bullish while the RSI remains below the overbought zone, which means it is likely to move higher.

closing thoughts

Depending on the fundamental aspects, the OP can bring value to his users in the long run. From the technical charts, the coin is turning support with bullish momentum. Although the coin is on a retracement level, there could be a bounce off the support level.

An upward momentum would be welcome to confirm a bullish price action signal optimism, At the current price, it would be prudent to be patient until a suitable buy signal hits an immediate support level.

Where to buy OP

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