Optimism token (OP) finds itself in choppy waters as it fails to maintain consolidation above the 20-Day Moving Average (20DMA). July saw a promising +43.25% rise in OP’s value, however, the decline in support from the 20DMA signals potential downward trend for the Optimism token. The trading channel currently pegs OP at $1.51, posting a 24-hour change of -1.11%. Losing the 20DMA support has resulted in a close-to -6% shrink since August 9.
The price level to watch is clearly demarked at $1.60, where the 20DMA forms a capstone of resistance. The historical trend shows a potential for further drop in OP’s value, given that the last two instances of losing 20DMA support saw the price dip to the lower trendline.
However, it isn’t all gloom. Optimism’s Relative Strength Index (RSI) has significantly cooled off to 45.53 since it last dropped below the 20DMA. This offers a silver lining that with adequate consolidation, there could be a foothold for a push upwards. Still, the MACD at -0.027 poses a counter narrative, indicating that a return to the lower trendline is a real possibility.
The risk-reward ratio for Optimism doesn’t make it an appealing prospect, with a grim ratio of 0.29, largely dominated by downside risk. With an upside that’s potentially capped at $1.60 (+5.9%) in the near term, the downside threatens a 20.58% drop of the price towards $1.20.
Interestingly, while Optimism experiences turbulence, XRP20, a groundbreaking Ethereum-compliant ERC20 token, is driving intrigue in the crypto universe. With its philosophy and tokenomics inspired by Ripple (XRP), but fashioned for the retail markets, XRP20 has raised over $3.45m.
XRP20 is much more than just the latest 2.0 version in vogue, it promises new utility in the XRP space and offers lucrative staking rewards to token holders. Furthermore, it offers promising passive income potential, making it an attractive proposition compared to the original XRP.
One significant edge XRP20 holds over XRP is the 192% staking APY, an impressive offer that has already enticed over 10% of the initial supply to stake. In terms of price comparison, XRP20’s $0.000092 current price is 30 times less than XRP’s all-time low. Should XRP20 climb to match current XRP price, it could provide up to 6,629 times in gains.
XRP20’s appeal is further boosted by its deflationary and decentralized nature. With a 0.1% transaction burn mechanism and a plan to remove 10% of the overall token supply, XPR20’s scarcity model amplifies its allure. As an independent entity not affiliated with Ripple Labs or XRP, XRP20 targets the hardcore fan base of the XRP Army and those seeking fresh crypto opportunities.
Overall, with its heightened traction on Google and a mounting presale of $1.79m, XRP20 proposes a potentially massive price uplift. These insights, however, carry risk. Remember that crypto assets hold high risk, this article does not provide investment advice, and your capital could be lost entirely.
Source: Cryptonews
