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Following a slight enchancment within the broader cryptocurrency market, Optimism (OP) has posted optimistic features as we speak, August 2. The token is now over 10% larger than seven days in the past. Optimism’s acquire has positioned it among the many top-gaining cash as we speak, with an almost 3% acquire within the final 24 hours. 

Optimism Price Action as Bulls Struggle to Prevail

According to CoinMarketCap data, Optimism peaked at $1.6712 on Wednesday morning, an over 5% improve from its past-day value. However, as a result of intense battle between the consumers and sellers, OP has receded from the day peak and is now traded at $1.63, with a 3.08% value improve.

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Optimism maintained a reasonably bullish momentum from July 13 to August 2, mirrored in its over 22% 30-day value improve. While the uncertainty about its subsequent value motion stays excessive, speculations counsel the next developments would possibly affect the OP’s market outlook within the coming days.

Optimism Could Face Backlash Due To The Recent BASE Exploit

Coinbase’s newly launched BASE community constructed on the Optimism Stack reportedly witnessed a backdoor contract exploit, resulting in the lack of 597 Ether value roughly $1 million. 

According to on-chain investigations, the exploiters infiltrated a BASE Chain’s backdoor contract, constantly minted tokens, and offered them for revenue. Data exhibits that the perpetrator tackle already minted 40 completely different tokens, producing roughly 597 Ether in revenue, which has been moved out.

Speculations are that the exploit would possibly affect all protocols linked to it, together with the Optimism community, since BASE anchors the OP Stack. Also, the BASE hype attracted a number of new crypto addresses to the Optimism community. The current hack might depress investor sentiment, probably impacting OP’s value.

The variety of energetic addresses on the Optimism community grew considerably over the previous couple of months after BASE’s launch in late February. However, this progress could possibly be stalled as a result of unlucky occasion on the BASE community.

OP Price Outlook; Will the Bulls Sustain the Rally?

The OP/USD every day chart demonstrates OP’s bullish momentum because the bulls struggle to safe larger market positions for the coin. OP has surpassed its two vital help ranges, and the bulls present no signal of stopping, evident within the quick inexperienced candlesticks fashioned above the $1.631 help degree.

The Moving Average Convergence/Divergence is above the sign line with inexperienced histogram bars that replicate the asset’s bullish momentum. In addition, the RSI has crossed the overbought area and now sits at 75, demonstrating elevated shopping for stress on OP. 

However, a bearish development reversal is feasible for the reason that consumers have reached saturation and should recede on account of a decline in momentum. 

As of the time of writing, OP trades at $1.63. But the following few hours are vital as the worth may decline to $1.61 if the bears reclaim management.

Featured picture from Pixabay and chart from TradingView.com