Optimism Price Prediction - OP Pulls Back From ATH But $10 is Still in View

cryptonews.com:

The optimism price has dropped by 5.5% in the past 24 hours, reaching $2.77 in the context of a 0.5% dip for the cryptocurrency market as a whole. However, the altcoin remains up by 7% in a week and by 27% in the last 30 days, buoyed by the news Coinbase will be launching its own layer-two network for Ethereum using Optimism-based technology. 

While the short-term rally following from this news has now died down, the medium- and long-term prospects for OP remain very good. Coinbase's use of Optimism's open-source OP Stack for developing Base, its layer-two sidechain, will boost the Optimism ecosystem significantly in the coming months, helping to boost OP's price in parallel.

OP's indicators would suggest that a selloff is indeed due in the short-term, with the coin looking a little overbought at the moment. For instance, its 30-day moving average (red) has climbed much, much higher than its 200-day average (blue), signalling that a reversal is due soon.

Likewise, OP's relative strength index (purple) has begun sinking towards 50, after having spent much of the year above 70. In other words, it had been somewhat overbought in recent weeks, and now its price may fall for a short period, until its RSI bottoms out.

A key support level to watch out for is $2.70. If OP falls decisively below this, it may continue to fall further, although its recent momentum suggests that it should just about hold out.

Indeed, recent events suggests that OP could end up becoming one of the most profitable tokens of 2023. Most notably, Coinbase's announcement this week of its Base layer-two network is a humongous win for Optimism, with the US-based exchange now joining the platform's ecosystem as its second core developer.

As explained in a blog