Optimism price prediction: More downside after Base update? OP slides below key levels

Traders Union
All News
Crypto News
Optimism slides 7.55% to $0.1249 today

Highlights

Optimism faced material selling pressure after Base announced a fundamental change reducing OP's function as an Ethereum layer-2, with anticipated declines in transaction activity and revenue.
Open interest in OP derivatives surged roughly 60%, signaling a strong increase in short interest and heightened bearish positioning among traders.
OP price trades at $0.1249, below the MA-20 ($0.1838), with immediate technical support at $0.1120 and resistance at $0.1370, reflecting sustained bearish momentum and high volatility.

Short bets intensify after Base announcement disrupts OP’s outlook

Optimism faced heightened selling following an announcement from Base that initiated a fundamental change affecting OP's function as an Ethereum layer-2 solution. This development is expected to significantly reduce transaction activity and revenue for Optimism. During this period, open interest in OP derivatives also surged by roughly 60%, reflecting intensified short interest among traders.

Bearish signals persist as OP faces technical resistance and oversold readings

Technically, OP is under sustained pressure with the Ichimoku Kijun at $0.2147 acting as immediate resistance above current levels. Both the MACD and ADX indicators point to ongoing bearish momentum, while the RSI, Commodity Channel Index, and Stochastic RSI are all in oversold territories, confirming broad weakness. Bull/Bear Power remains negative and the Awesome Oscillator continues to signal selling dominance, aligning with heightened intraday volatility and the proximity of price to session lows after the open.

Downside risk persists with weak rebound prospects amid volatility

Looking ahead, OP is expected to trade within a volatility band of $0.1120 – $0.1370 over the next five sessions, with the current price situated near the lower edge of this corridor. Downside risks remain elevated, and the probability of a meaningful upside reversal this week is low. Unless OP breaks decisively above $0.1370, continued sideways or downward movement is likely, while a failure to hold $0.1120 could open the way for further declines.

Viktoras Karapetjanc, expert at Traders Union, sees recent downside in Optimism (OP) as a reaction to changed fundamentals triggered by Base’s announcement. He notes that the selling pressure is intensifying, but sees short-term oversold signals on multiple indicators and a potential for stabilization if the $0.1120 level holds. Karapetjanc remains fundamentally constructive on OP’s longer-term relevance as an Ethereum layer-2, especially if current volatility lifts and market sentiment stabilizes. In his words: "While caution is warranted, I believe OP will recover if it maintains support above $0.1120 and broader market sentiment improves."

Previously it was reported that Optimism is trading well below its major moving averages and key resistance at the Ichimoku Kijun, with momentum and volatility indicators such as MACD, ADX, and RSI all confirming pronounced downside pressure and oversold conditions. With sellers maintaining control and no bullish signals present across technicals, the asset is expected to remain rangebound with further losses likely in the near term.

Source of Data: OP Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.