Optimism is trading in the green today, with its trading volume up by over 54%. OP traded at $0.9231 on January 1, 2023, and peaked at $3.0294 on February 7, close to its all-time high value of $4.5692.
Currently, OP is at the $1.6 price level as it seeks to consolidate its gains, which is bullish. Also, the upcoming upgrade in June might lead to an uptrend for the asset.
Optimism (OP) Technical Analysis
OP price is in an uptrend today, forming a higher high on the daily chart and moving up from the sideways trend of the last few days. However, despite its positive price moves today, the bears are still active in the market.
OP is trading below its 50-day and 200-day Simple Moving Averages (SMA), a short and long-term bearish sentiment.
Also, it is in the lower region of the Donchian channel, where it moved from its previous downtrend. This is also a bearish sentiment for the asset.
However, it is not all bad for the digital asset as OP has formed four consecutive green candles on the daily chart confirming that the bulls are rallying once again in the market. OP has found strong support at the $1.621 price level. It is approaching the $1.709 resistance level as the bulls mount pressure today.
OP’s Relative Strength Index (RSI) is at 35.47, close to the oversold region 30. The RSI is moving upwards, indicating a potential bullish recovery ahead.
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A break above this resistance level will see the asset reclaim the $1.903 price level in the coming days. However, if another price decline occurs, the $1.544 support will prove critical to sustaining its gains this year.
Upcoming Bedrock Upgrade
The Optimism Mainnet Bedrock Upgrade will occur on June 6, 2023, at 16:00 UTC. This upgrade is a community-based decision by members holding governance tokens.
The Optimism Foundation released a schedule of events for the execution of this upgrade from the announcement. The long-anticipated upgrade will feature lower transaction fees, increased high network security, and compatibility with Ethereum.
It aims to reduce delays on the network and cut deposit time from 10 minutes to 3 minutes. The OPlabs team announced a 2-4 hours downtime will occur during the upgrade.
Also, once the upgrade commences, deposits and withdrawals on the legacy network will pause, and the smart contracts on the Layer 1 (L1) will be upgraded.
While the upgrade does not guarantee a price increase, the improvements can boost investors’ interest in the network.
Also, Optimism’s price performance this year is positive despite volatility. And the upgrade and increased investor interest may help it surpass its all-time high value.
Featured image from Pixabay and chart from Tradingview.com