Optimism Price Forecast: Could the Arbitrum airdrop send OP 12% south as market rival makes headlines?


  • Optimism price is trapped within a formidable supplier congestion zone as rival Layer 2 token airdrops.
  • Event-related hype could send OP down 12% to $2.150.
  • A decisive flip of the support provided by the uptrend line at $2.475 could invalidate the bullish thesis.

Optimism price (OP) has been moving horizontally within a fixed supplier congestion zone and could break out soon. The expected trajectory for OP comes amid an alt season with rival Ethereum Layer 2 (L2) token Arbitrum holding its airdrop event. If event-related hype stirs things in the OP market, the altcoin could finally make the much-awaited run.

Optimism price could dip 12% amid Arbitrum-related hype

Optimism price could respond to the hype around Arbitrum’s ARB token airdrop, causing it to lose more value and record losses for investors. The expected directional bias comes as the two tokens are key players and tight competitors as the largest L2s using Optimistic roll-up technology to scale Ethereum

Investor interest around Arbitrum’s new milestone could inspire an increase in selling pressure in the OP market as investors opt to switch to ARB. Such interest would come, presumably, because of the ‘Coinbase effect’, where token listing causes a bigger price pop for ARB.  Traders looking to take advantage of the expected rally in the Arbitrum market would sell their OP positions in favor of ARB, causing Optimism price drop.

In such a move, Optimism price could shatter below the immediate support at $2.428. Such a move could send the altcoin to a cliff, with the next shed expected around the 2.288 support level.

Optimism price could plunge further in extreme cases, tagging the March lows around $2.150. Such a move would denote a 12.83% drop from current levels.

OP/USDT 4-hour chart

Conversely, if the hype around the Arbitrum airdrop draws investors towards L2 tokens, this could inspire a northbound move. In this regard, the Optimism price could rise above the immediate psychological resistance around $2.532.

If bullish momentum increases above this level, the token could shatter the resistance confluence between the horizontal and the downtrend lines at $2.613. Breaching past this supplier congestion zone could lay out the path for the altcoin to rally north toward the psychological resistance level at $2.910.

Optimism price could recover the February highs around the $3.020 resistance level in highly bullish cases. Such a move would constitute a 23.01% ascent from current levels.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP