- Optimism activated the Bedrock upgrade or hard fork on Tuesday.
- This is an important milestone in its goal of creating a superchain.
- The triple-top pattern points to a move to $1 and below.
Optimism’s OP price has moved downwards in the past few weeks as investors assess the impact of the recent Bedrock upgrade. OP price was trading at $1.413, a few points above this week’s low of $1.267. This price is the lowest level since January 13th and dropped by more than 56% from the highest level this year.
Bedrock upgrade completed
The focus among cryptocurrency investors this week was the lawsuits against Binance and Coinbase. The lawsuits allege that these companies offered illegal services to customers in the United States. These reports were notable because of the size of these companies and their market share in the US.
Further, the lawsuits also shed light about crypto tokens like OP, AVAX, and MATIC. The logic of the Binance suit is that these tokens are equivalent to financial securities. Securities providers are required to register with the SEC and provide regular disclosures.
Another story that went under the radar was on Optimism, the third-biggest layer-2 network in the world after Arbitrum and Polygon. In a statement, the developers said that they had activated the Bedrock upgrade, which I wrote about recently here.
The upgrade, which is the biggest one in the ecosystem will improve the usability of the ecosystem and reduce fees, and reduce the deposit-confirmation time by about 90%. The goal of this upgrade is to transform Optimism into a “superchain” that is made up of mainly interoperable blockchains.
Coinbase has already signed up to this. In a statement a few months ago, the company said that it will use Optimism’s platform to build Base, its ecosystem’s chain. Worldcoin, the cryptocurrency founded by OpenAI’s founder, is also using Optimism.
For starters, Optimism is a layer-2 scaling platform for Ethereum. This means that it helps to supercharge dApps in its ecosystem by reducing fees and transaction speeds. It has a total value locked of over $1.1 billion, making it one of the biggest chains in the industry.
Optimism OP price prediction
The daily chart shows that the OP crypto price formed a triple-top pattern that is shown in orange. Its neckline was at $1.82, which the coin moves below it on May 8. The token has moved below the 50-day moving average and is now sitting at an important level, which was the highest level on November 5 and September 10 last year.
Therefore, by moving below the neckline of the triple-top pattern, there is a likelihood that OP price will have a bearish breakout as sellers target the next psychological level of $1.
