The analysts have shared a rather positive review and analysis about the trading price of Optimism (OP) in near future.
OP has Entered a Corrective Pattern
According to their findings, the corrective pattern for the asset may conclude very soon. The correction pattern means that if an asset keeps growing in value and power, it ends up entering the overbought zone.
This means that the bulls continue buying an asset and push it to a certain level, which they cannot sustain for long.
As the price of the asset reaches a particular level, the fear starts to rise among the investors for a potential selling spree.
In most cases, a selling spree does take place and the price of the asset starts to decline to lower levels. The price of the asset keeps declining until it reaches a level where the bulls are in power.
This is the level where the bulls are in control and they do not let the price of the asset fall any deeper than that.
This particular phenomenon is referred to as price correction. Most of the time, the correction is not similar to the same level where the rally started to take place. Instead, it is a new support level, which is higher than the previous one.
Optimism Shutdown Fears have Dispersed
More than a week back, there was a lot of uncertainty and fear involving Optimism. There were reports that Optimism was on the verge of shutting down.
It is the network responsible for accommodating the largest marketplace for non-fungible tokens. As the news came out, there was fear among the investors who did not want to be part of the asset anymore.
With such news revolving around Optimism, the investors had started to distance themselves from the protocol.
However, the network made an announcement that will soon bring the investors back to the market. The platform announced that they were no longer shutting down.
Optimism’s TVL is Growing
Since the announcement, the total value locked (TVL) of Optimism which had somewhat halted, has resumed. The asset is back in action and its TVL is also getting pushed higher.
The reports suggest that the TVL of Optimism has started to surge and at the time of writing, it is at $1.91 billion. It is currently running on the Layer-2 protocol of the Ethereum blockchain.
In terms of TVL, it is second only to the Arbitrum protocol, which has a TVL of $3.38 billion.
Arbitrum’s TVL may be high but it took a while for the network to reach this level. On the other hand, Optimism has taken very less time to reach the $1.91 billion TVL and its figure is rising at a very fast pace.