- 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%.
Daily chart for ARB/USDT (Source: TradingView)
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.
Daily chart for OP/USDT (Source: TradingView)
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.
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