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 on account of a bunch of rumors that Optimism’s multisignature pockets had been hacked.
Once you resolve to maneuver $450 million onchain with out telling anyone why pic.twitter.com/l6lCkBUt8H
— foobar (@0xfoobar) August 17, 2022
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 on account 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 had been a collection of scheduled transfers made to the Coinbase Custody wallets.
We’re seeing some confusion about current transfers of OP out of a multisig. That is anticipated—right now we executed a collection of deliberate normal transfers to the Coinbase Custody wallets of assorted traders in OP Labs PBC.
— Optimism (✨🔴_🔴✨) (@optimismFND) August 17, 2022
As quickly as Optimism clarified the misunderstanding, 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 value of the OP token on 17 August, the value corrected to its preliminary place after Optimism debunked the rumor and guaranteed traders of the security of their funds.
Nonetheless, knowledge from CoinMarketCap revealed a constant decline within the value 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 value of the token has gone down by over 30% in August. This decline got here after the bull run in July that induced the token to rally by 60%.
Issues didn’t look good for OP on a every day chart. Within the final 24 hours, its value was down by 12%.
At the moment, exchanging fingers at its June degree, the token’s value was down 73.98% from its all-time excessive of $4.57.
With waning shopping for stress, the token’s Relative Energy Index (RSI) and Cash Circulation Index (MFI) had been noticed in a downtrend under the 50-neutral area.
As of this writing, the RSI and MFI had been 40 and 33, respectively.
The Transferring Common Convergence Divergence (MACD) additionally revealed {that a} new bear cycle for the OP token commenced on 9 August.
Subsequently, an additional value decline ought to be anticipated.
Supply: TradingView
It’s all downhill
Information 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.
Previously 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
