will optimism [OP] headlines see a new bearish cycle soon

will optimism [OP] headlines see a new bearish cycle soon

Optimism’s native OP token witnessed a sharp 10% drop during the intraday trading session on August 17. The decline came as a result of a bunch of rumors that Optimism’s multisig wallet had been hacked.

The hacking scare occurred after the L2 blockchain multisig wallet posted a suspicious move on the chain.

In early June, Optimism lost 20 million OP tokens due to a mistake between multisignature addresses.

Considering the seriousness of the situation, Optimism immediately took Twitter on the night of August 17 to debunk the rumour.

The tweet explained to its users that the OP transfers out of the multisignature address were a series of scheduled transfers made to Coinbase Custody wallets.

As soon as Optimism cleared up the misconception, the OP token managed to show some recovery. But was that enough?

Still having a hard time?

Following the rapid 10% drop in the OP token price on August 17, the price corrected back to its initial position after Optimism debunked the rumor and assured investors of the safety of their funds.

However, data from CoinMarketCap revealed a steady decline in the price of the token over the past two days.

At the time of writing, it was trading at $1.18, down 11% since the hacking scare on August 12.

Furthermore, the price of the token is down more than 30% in August. This decline came after the July bull run that caused the token to jump 60%.

Things didn’t look good for OP on a daily chart. In the last 24 hours, its price fell by 12%.

Currently changing hands at its June level, the token price is down 73.98% from its all-time high of $4.57.

With buying pressure easing, the token’s Relative Strength Index (RSI) and Money Flow Index (MFI) were spotted in a downtrend below the 50 neutral region.

At the time of writing this article, the RSI and MFI were 40 and 33, respectively.

The Moving Average Convergence Divergence (MACD) also revealed that a new bear cycle for the OP token began on August 9.

Therefore, a further price drop should be expected.

Source: TradingView

everything is downhill

Data of token terminal revealed that L2 Blockchain had seen a decline in its daily revenue over the past seven days.

As of August 17, Optimism posted a daily revenue of $18,000, which represents a 12% decrease over the last seven days.

In the last three months, daily income on the network decreased by 36.7%. After posting an all-time high daily revenue of $492,000 on May 12, revenue on the network has been on the decline ever since.

Source: Token Terminal

In addition, the accumulated income in the network since February 23 amounts to 9 million dollars. This represented a 25% revenue gap to the $12 million earned by Arbitrum in the same period.

Source: Token Terminal

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