The post Here’s What’s Next for These Popular Layer-2 Tokens as RWA & MEMES Lead the Market appeared first on Coinpedia Fintech News
The launch of the spot ETH ETF was expected to be a positive development for Ethereum and Ethereum-based tokens. Furthermore, the entire crypto market was expected to experience a significant boost, but the outcome was quite different. This caused the layer-1 & layer-2 tokens to remain consolidated within a narrow range without exhibiting the required strength. Here is what’s next for the Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) prices during the second fortnight of the month.
Polygon (MATIC)
The weekly chart of MATIC price suggests the price has approached the end of the consolidation and hence a major breakout may occur anytime from now.
The price broke the ascending trend line but has held firmly within the descending parallel channel and is heading to test the lower support
Besides, the Bollinger bands have begun to squeeze, suggesting a massive drop in volatility, which may result in a massive breakout soon
However, the RSI has reached a lower level and is about to trigger a bullish rebound, validating a rise from the bearish captivity and reclaiming levels above $1
Arbitrum (ARB)
Similar to the MATIC price rally, the Arbitrum price seems to have reached the apex of a bearish consolidation, which may result in a bullish breakout
On-balance volume has fallen to its lowest level, which indicates the end of the accumulation phase within a descending trend is on the horizon.
On the other hand, the RSI fails to reach the average range and is about to initiate a bearish reversal
Therefore, the ARB price is believed to drop to the lower support of the wedge and exhaust the selling volume as a rebound occurs, which may trigger a strong upswing and breach the upper resistance to reach $0.8 and later above $1
Optimism (OP)
The Optimism price has shed most of the gain that it incurred since the start of the year, which could flip the trend after the sellers face extreme exhaustion
The price is trading between the crucial resistance and support zones, displaying a huge possibility of a bearish pullback before the next price action
The MACD is close to triggering a bullish crossover as the selling volume has dropped to a large extent
Therefore, the OP price is speculated to drop slightly, close to $1, which may attract fresh liquidity, paving the way for a significant rise to $2