• Optimism price is trading at a new all-time high of $2.50, up 24% in the last 24 hours.
• OP has extended the leg 498% above its all-time low of $0.40 on June 18, 2022.
• Investors who missed the upswing may want to hold onto their money until Optimism price breaks above a crucial resistance at $2.50.
The crypto market recently experienced a widespread retracement with Bitcoin price retracing from highs around $23k, testing support at $22,000 and Ethereum leading other altcoins in slowing down a three-week aggressive push by the bulls. However, Optimism was largely unbothered, joining explosive altcoins like Aptos (APT) to reach new all-time highs. After another 24% spike in 24 hours, Optimism is now trading at $2.43, approximately 3.6% from its new record high of $2.50 on January 25.
This impressive price rally is largely attributable to the growing demand for decentralized finance (DeFi) projects. Optimism is a protocol that enables the creation of Ethereum-based layer-2 solutions, like the Optimistic Rollups, that enable high throughput Ethereum transactions. The protocol additionally supports a blockchain-agnostic virtual machine, dubbed Optimistic Virtual Machine (OVM), that allows developers to build on multiple layer-2 solutions with the same set of smart contracts.
The OVM has already attracted attention from top developers, with the Optimism team recently announcing the launch of Uniswap V3 on the OVM. This launch is expected to bring even more attention to the project, and drive more investors to the market, pushing the price even higher.
As of now, investors are still reaping big from the Optimism price rally, with the coin extending the leg 498% above its all-time low of $0.40 on June 18, 2022. However, the current price rally may be taking a breather, with the Stochastic oscillator shining a light on the extremely overbought conditions. This means that investors who missed the upswing may want to hold onto their money until Optimism price breaks above a crucial resistance at $2.50. Besides, there is a glaring possibility of a retracement that will allow sidelined investors to catch the trend, while OP collects more liquidity.
Overall, Optimism looks set to continue its impressive run, as more developers and investors continue to be drawn to the project. With the launch of Uniswap V3 on the OVM, the project could attract even more attention, and drive the price even higher.