ARB, OP Lead the Layer-2 Pack in Terms of 24-Hour Gains

  • The market capitalization of Layer-2 cryptocurrencies increased 0.4% over the past 24 hours.
  • OP and ARB achieved 24-hour gains of 0.66% and 0.98% respectively.
  • Technical indicators suggested that OP has a greater potential for gains than ARB in the coming weeks.

The combined market capitalization of Layer-2 cryptocurrencies was up 0.4% according to CoinMarketCap. Subsequently, the total stood at $10,264,024,366 at press time. Furthermore, the total trading volume in this sector had risen 1.54% over the past 24 hours.

Leading the charge in the Layer-2 category were Arbitrum (ARB) and Optimism (OP). These two altcoins were the biggest 24-hour gainers in the top 5 list at press time.

Arbitrum (ARB)

CoinMarketCap indicated that ARB, the 3rd largest Layer-2 cryptocurrency, was changing hands at $1.03 after it gained 0.66% throughout the past day of trading. Despite the positive daily performance, the altcoin’s weekly performance remained in the red zone at -10.31%.

From a technical perspective, ARB was attempting to overcome the $1.0605 resistance at press time. Leading up to today, the altcoin’s price had also printed higher lows over the past 4 days. If this positive trend continues in the coming few days, then the altcoin’s price could flip the $1.0605 resistance into support within the next 48 hours.

This will then open up a path for ARB’s price to rise to $1.1736 in the following week. However, there will be 2 technical indicators that may hinder ARB’s chances of reaching this significant price point. The first will be the 20-day EMA line at $1.0949. A break above this line will then just leave the 50-day EMA line at $1.1323 in ARB’s way toward reaching $1.1736.

However, If ARB’s price is rejected by the $1.0605 resistance level, then it may be at risk of dropping to $0.8980 in the coming couple of weeks. This bearish thesis will be invalidated if the altcoin remains above $0.0158 for the rest of today’s trading session.

Traders and investors will want to take note of the fact that short and medium-term momentum was in favor of sellers. At press time, the 9-day EMA line was positioned below the 20-day EMA line. In addition to this, both of these EMA lines were bearishly positioned below the longer 50-day EMA line.

Optimism (OP)

Ranked as the 4th biggest Layer-2 project, the price of Optimism (OP) stood at $1.48 after it increased 0.98% during the past day of trading. The 24-hour gain also meant that the cryptocurrency’s total market capitalization was estimated to be $1,062,360,423 at press time.

OP seems to have bigger potential for generating gains for investors in the coming two weeks, at least from a technical perspective. The altcoin had printed a higher low throughout the past week and was subsequently trading above the key support level at $1.40. Should this momentum continue, the cryptocurrency may soon flip the $1.516 resistance into support.

A confirmation of the altcoin’s price claiming a position above this key threshold will be when it closes a daily candle above the 9-day EMA line at around $1.481. Furthermore, a break above the $1.516 mark will open up a path for OP’s price to rise to $1.623 in the next couple of days. Continued buy pressure could also push OP’s price to $1.940.

On the other hand, if OP fails to close a daily candle above $1.516 in the coming 48 hours, then the altcoin could be at risk of retesting the support at $1.40 during the coming week. If enough sellers offload their holdings, then OP’s price could even plummet to $1.165.

Traders and investors will want to note that the 20-day EMA line was looking to cross below the 50-day EMA line at press time. If these two technical indicators cross, then OP’s price will enter into a medium-term bearish trend, which will most likely result in the altcoin’s price dropping in the next few weeks.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

Source: https://coinedition.com/arb-op-lead-the-layer-2-pack-in-terms-of-24-hour-gains/