Market

Optimism (OP) Total Value Locked Plunges to Nine-Month Low

Published

2 months ago

July 9, 2024

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Leading Layer 2 blockchain solution built atop the Ethereum network, Optimism (OP) has witnessed a significant decline in its total value locked (TVL).

At $643 million at press time, it sits at its lowest since October 2023.

Optimism Sees Decline in Network TVL

Optimism’s TVL measures the total value of all the cryptocurrencies locked within the decentralized finance (DeFi) protocols housed on its network.

When it declines, it means the users of these protocols are withdrawing their assets due to a general market downturn or high volatility. Optimism’s TVL has maintained a downtrend since it climbed to a year-to-date peak of $1.05 billion on March 17.

Optimism Total Value Locked. Source: DefiLlama

It has declined by 18% in the last month alone, mirroring the general downturn in the cryptocurrency market during that period. At $2.23 trillion at press time, the decrease in crypto market activity has led to a 12% drop in global cryptocurrency market capitalization in the past 30 days.

Due to the increased liquidity exit from the L2, Optimism has witnessed a drop in monthly revenue.

Optimism Network Revenue. Source: Token Terminal

Although the network’s revenue totaled $2.33 million last month, it has decreased by 9% in the past 30 days.

OP Price Prediction: What to Expect With the ETH ETF Around the Corner

At press time, the Layer 2’s native token OP trades at $1.51. Due to the general market decline, the altcoin’s value has dropped by 32% in the last month.

According to readings from its one-day price chart, the altcoin continues to be trailed by significant bearish sentiment. For example, its Elder-Ray Index has returned only negative values since June 6. As of this writing, the indicator’s value is -0.15.

This indicator measures the relationship between the strength of buyers and sellers in the market. When its value is negative like this, it means that bear power is dominant in the market.

However, the altcoin may witness a rebound and record gains with a number of exchange-traded funds (ETFs) that will track the spot price of Ethereum (ETH), which is expected to become tradeable this month.

On Monday, asset managers VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise filed their amended spot ETH ETF S-1 registration statements with the U.S. Securities and Exchange Commission.

Beincrypto earlier reported that the launch of spot Ether ETFs could attract between $3 billion and $5 billion within the first six months. This may cause a 23-28% spike in ETH’s value.

Sharing a statistically positive correlation with ETH may also drive up OP’s value. Once these new funds go live and the demand for the Layer 2 network resurges, OP’s next price point is above the $1.7 level.

Read More: What Is Optimism?

However, if the spot ETH ETF turns out to have been priced in and the leading altcoin does not immediately react, the demand for OP may continue to plunge, causing its price to drop to $1.32.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Locked NineMonth Optimism Plunges Total

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Market

BNB Rides Bullish Wave After 100-Day SMA Breakout, Next Stop $605?

Published

2 hours ago

September 20, 2024

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Recent price movement reveals that BNB has surged past a critical barrier, clearing the 100-day Simple Moving Average (SMA) and signaling renewed bullish momentum. With this breakout, BNB bulls are setting their sights on the $605 resistance level, as market sentiment strengthens around the potential for further gains. The move above the 100-day SMA has sparked optimism, hinting at the possibility of a sustained rally as BNB looks to capitalize on this momentum and break through key price targets.

The goal of this analysis is to highlight BNB’s recent surge above the 100-day Simple Moving Average (SMA) and evaluate the potential for continued positive movement toward the $605 resistance level. By examining current market dynamics and technical signals, this analysis aims to provide insight into whether BNB can maintain its upward momentum and achieve a significant breakout in the coming sessions.

Rallying Strength: Analyzing BNB’s Surge Above The 100-Day SMA

On the 4-hour chart, BNB has demonstrated sustained positive momentum after successfully breaking above the 100-day Simple Moving Average (SMA). This significant breach has not only triggered a shift in market sentiment but set the stage for a bullish trajectory as BNB rises toward the $605 mark. BNB’s ability to maintain above this key technical level reflects growing confidence among traders, suggesting that the upward movement may continue.

Additionally, the Relative Strength Index (RSI) on the 4-hour chart has climbed above the 50% threshold, currently sitting at 69%. This upward movement in the RSI indicates that bulls are firmly in control, as the index approaches overbought territory. If selling pressure remains subdued, there is potential for an extended increase in BNB’s price, signaling a strong bullish trend ahead.

On the daily chart, BNB is maintaining an upswing toward the $605 resistance level while trading above the 100-day Simple Moving Average (SMA). The price has printed multiple candlesticks above this key indicator, underscoring the strong buying pressure from investors and indicating a solid sentiment in BNB’s potential for continued growth.

Finally, on the 1-day chart, a careful examination of the formation of the 1-day RSI reveals that BNB could sustain its bullish trend toward the $605 resistance mark as the signal line of the indicator has risen above 50% and is currently attempting a move towards the 70% threshold.

What’s Next For BNB As Resistance Beckons

With strong buying interest and positive market sentiment, BNB is gearing up to reach the $605 resistance level. When BNB breaks above this point, it could lead to more gains, aiming for the $635 resistance zone and beyond.

However, the altcoin may face a pullback toward the $537 support mark if the momentum falters and fails to surpass this level. A decline below this support could lead to additional drops, with the price potentially testing the $500 support range and other lower levels.

At the time of writing, BNB was trading at approximately $575, reflecting a 3.05% increase over the past day. Its market capitalization was around $84 billion, with trading volume surpassing $1.9 million, showing increases of 3.05% and 9.81%, respectively.

BNB

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Market

XRP Price Battles Resistance Around $0.60: Will the Struggle End?

Published

6 hours ago

September 20, 2024

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

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Market

Bitcoin Cash Price Jumps 15%: Is This Just the Beginning of More Gains?

Published

7 hours ago

September 20, 2024

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Bitcoin Cash price started a major increase above the $320 resistance. BCH is consolidating and might aim for more gains above the $350 resistance.

Bitcoin cash price started a fresh increase above the $330 level.
The price is trading above $335 and the 100-hour simple moving average.
There is a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair (data feed from Kraken).
The pair could start another increase if it clears the $350 resistance zone.

Bitcoin Cash Price Starts Fresh Surge

After forming a base above the $305 level, Bitcoin Cash price started a fresh increase. BCH outpaced Bitcoin and Ethereum to gain over 15%. There was a clear move above the $320 resistance zone.

The price even surpassed $335 and tested the $350 resistance zone. A high was formed near $349.73 and the price is now correcting gains. There was a minor move below the $345 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $306.92 swing low to the $349.73 high.

Bitcoin cash price is now trading above $335 and the 100-hour simple moving average. Immediate resistance on the upside sits near the $345 level. There is also a bullish flag pattern forming with resistance at $345 on the hourly chart of the BCH/USD pair.

A clear move above the $345 resistance might start a decent increase. The next major resistance is near $350, above which the price might accelerate higher toward the $362 level. Any further gains could lead the price toward the $380 resistance zone.

Fresh Drop in BCH?

If Bitcoin Cash price fails to clear the $345 resistance, it could start a fresh decline. Initial support on the downside is near the $335 level. The next major support is near the $328 level or the 50% Fib retracement level of the upward move from the $306.92 swing low to the $349.73 high.

If the price fails to stay above the $328 support, the price could test the $320 support. Any further losses could lead the price toward the $305 zone in the near term.

Technical indicators

4-hour MACD – The MACD for BCH/USD is gaining pace in the bearish zone.

4-hour RSI (Relative Strength Index) – The RSI is currently above the 50 level.

Key Support Levels – $335 and $328.

Key Resistance Levels – $345 and $350.

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