Will Optimism [OP] holders see a new bear cycle soon

Optimism’s native token OP witnessed a pointy decline of 10% throughout the intraday buying and selling session on 17 August. The decline got here because of a bunch of rumors that Optimism’s multisignature pockets had been hacked.

The hack scare occurred after the L2 blockchain’s multisignature pockets posted a suspicious transfer on the chain.

Earlier in June, Optimism misplaced 20 million OP tokens because of an error between multisignature addresses.

Contemplating the gravity of the state of affairs, Optimism instantly took to Twitter on the night of 17 August to debunk the rumor.

The tweet defined to its customers that the OP transfers out of the multisignature handle have been a collection of scheduled transfers made to the Coinbase Custody wallets.

As quickly as Optimism clarified the misperception, the OP token did handle to point out some restoration. However was that sufficient? 

Nonetheless having a troublesome time?

Following the speedy 10% decline within the worth of the OP token on 17 August, the worth corrected to its preliminary place after Optimism debunked the rumor and warranted traders of the protection of their funds.

Nonetheless, information from CoinMarketCap revealed a constant decline within the worth of the token up to now two days.

As of this writing, it traded at $1.18, dropping by 11% for the reason that hacking scare of 12 August.

Moreover, the worth of the token has gone down by over 30% in August. This decline got here after the bull run in July that brought on the token to rally by 60%. 

Issues didn’t look good for OP on a every day chart. Within the final 24 hours, its worth was down by 12%.

At the moment, exchanging palms at its June stage, the token’s worth was down 73.98% from its all-time excessive of $4.57.

With waning shopping for strain, the token’s Relative Energy Index (RSI) and Cash Stream Index (MFI) have been noticed in a downtrend under the 50-neutral area.

As of this writing, the RSI and MFI have been 40 and 33, respectively.

The Shifting Common Convergence Divergence (MACD) additionally revealed {that a} new bear cycle for the OP token commenced on 9 August.

Due to this fact, an extra worth decline needs to be anticipated.

Supply: TradingView

It’s all downhill

Knowledge from Token Terminal revealed that the L2 Blockchain had seen a decline in its every day income within the final seven days. 

As of 17 August, Optimism registered a every day income of $18,000, representing a 12% decline within the final seven days.

Up to now three months, every day income on the community declined by 36.7%. After logging an all-time excessive every day income of $492,000 on 12 Might, income on the community has since declined.

Supply: Token Terminal

Moreover, the cumulated income on the community since 23 February has stood at $9 million. This represented a 25% income hole from the $12 million made by Arbitrum throughout the similar interval.

Supply: Token Terminal

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