Optimism (OP) Price Estimate April 2024 – Rise or Fall?

Optimism (OP) has weakened from $4.86 to $2.97 since March 07, 2024, and the current price stands at $3.54.

A slowdown in net inflows and decreased trading activity are certainly negative factors for OP but some crypto analysts are convinced that OP is currently undervalued, pointing to the significance of Coinbase and the brand it has created over the years as a crypto exchange.

They believe that the key to Optimism’s success lies in the “power” linked with Coinbase, a brand facilitating billions of dollars in daily trading. But where is the price of Optimism (OP) going next, and what can we expect from April 2024?

Today, Crypto Lists will discuss Optimism (OP) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.

Optimism is driven by the real-world needs

Optimism is an extension to Ethereum which enables users and developers to benefit from the latter’s strong security guarantees while being cheaper and faster. Optimism’s EVM-equivalent architecture scales your Ethereum apps without surprises and it is important to say that Optimism allows you to do many of the same things as the Ethereum network, but approximately ten times cheaper.

Optimism is driven by real-world needs and it aims to keep its code as simple as possible, using proven Ethereum code and infrastructure when possible. According to the team behind this project, Optimism uses optimistic rollups and leverages the consensus mechanism of Ethereum to scale the network.

Blocks are constructed and executed on Optimism (L2), while user transactions are aggregated and sent to Ethereum (L1). Transactions are forwarded to Ethereum without direct proof of validity and remain subject to challenge for a defined duration and after this period, a transaction is considered final.

Similar to Ethereum, individuals using Optimism can engage with decentralized finance (DeFi) applications, participate in activities such as buying, selling, collecting, and minting NFTs, and more. OP serves as the native governance token of Optimism, enabling active participation in project governance within the Optimism community.

Integration with Coinbase

Optimism is one of the default supported networks in Coinbase Wallet and users have four options to fund their Coinbase Wallet (mobile) app on the Optimism network with ETH or other supported assets available on Optimism. Users who have an existing Coinbase account can buy from their Coinbase account inside of Coinbase Wallet but they can also transfer funds from their Coinbase account to their Coinbase Wallet.

Users who don’t have an existing Coinbase account can transfer assets using the Optimism Bridge inside Coinbase Wallet but they can also transfer assets already on the Optimism network from another wallet.

Rating: 9.33/10
Supply: 214 / 4
Release date: January 10, 2022

Description: Discover Optimism and be part of the cryptocurrency revolution.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

›› Read Optimism review›› Buy or Sell OP here

---

Optimism is home to numerous protocols

Optimism is home to numerous protocols and has a total value locked (TVL), making it a notable scaling solution for Ethereum. Led by the Optimism Foundation, a nonprofit entity, Optimism is committed to further growth of its ecosystem. Optimism created an ecosystem where value is created for its three constituencies: token holders, contributors, and community members.

Token holders are compensated through the productive re-deployment of sequencer revenue, contributors receive value from retroactive public goods funding while community members receive value from ongoing airdrops and project incentives.

The demand for OP block space generates revenue, which is allocated to public goods, consequently stimulating further demand for block space. This dynamic positions Optimism as a promising platform for diverse decentralized applications and protocols.

Some crypto analysts are convinced that OP is currently undervalued and according to analyst Adam Cochran, OP will increase its value because of Coinbase’s strength. Adam Cochran highlighted Coinbase’s vast user base and ability to drive retail adoption towards Base potentially. And, since Base uses Optimism, the expected adoption spike will significantly boost OP from current spot levels.

Adam Cochran contends that the significance of Coinbase’s “discoverability power,” as a brand facilitating billions of dollars in daily trading, will be pivotal to the success of Optimism. Coinbase is optimizing its operations by discontinuing support for Bitcoin, and Litecoin, and their emphasis is now on Ethereum-compatible tokens, suggesting a potential integration of Coinbase Commerce into Base in the near future.

Technical analysis for Optimism (OP)

Optimism (OP) has weakened from $4.86 to $2.97 since March 07, 2024, and the current price stands at $3.54. However, as long the price of OP is above this trendline which I marked on the chart below, the price of OP remains in the BUY-ZONE.

Important support & resistance levels for Optimism (OP)

On this chart (the period from September 2023), I marked important support and resistance levels that can help traders understand where the price could move. Optimism (OP) has weakened from its recent highs, but if the price advances above $4, the next target could be an important resistance level at $4.5. The important support level is $3, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $2.8. If the price drops below $2.5, which also represents an important support level, the next target could be located around $2.

What speaks for the rise in the Optimism (OP) price

Many crypto analysts said that Optimism (OP) could have a bright future and while still in its early stages, its unique blend of security, technology, and innovative features positions it as a strong contender in the race for mass adoption. At the same time, the overall sentiment on the cryptocurrency market can play a crucial role in OP’s price trajectory, while OP’s ability to maintain above $3 support is an encouraging sign, and it could potentially act as a strong foundation for a price bounce. A move above $4 would be beneficial for the bulls to take control of price movement.

What indicates the downfall of Optimism (OP)

The downfall of Optimism (OP) can be influenced by a wide range of factors, including negative news around Monero, market sentiment, regulatory developments, macroeconomic trends, and more. The period since March 07, 2024, has been negative for OP, and the bearish mood among OP whales seems to be a major factor that influenced the OP price downtrend.

The important support level for OP stands at $3, and if the price falls below this level, the next target could be $2.5. The price of OP is usually correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $65000 price level, that would certainly have a negative influence on the price of OP.

What do analysts and experts say?

After hitting recent highs above $4.8 on March 07, 2024, Optimism (OP) has encountered significant losses. The price is currently above $3.5, but a break below this level would indicate that OP could test again the support level at $3. Optimism (OP) is unpredictable and a risky investment, and because of this, investors should continue to be very cautious in the case of this cryptocurrency.

However, some crypto analysts have the opinion that OP is currently undervalued, and according to analyst Adam Cochran, OP will increase its value because of Coinbase optimization. Adam Cochran emphasized the extensive user base of Coinbase and its potential to propel retail adoption towards Base. Given that Base operates on Optimism, the anticipated surge in adoption is likely to substantially elevate OP from its current price level.

Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.