Crypto market analyst Ali has again highlighted Optimism (OP), an Ethereum scaling layer 2 solution, predicting bullishness on the token.
Ali says OP is capturing a set of chart patterns historically associated with a crack of a potential rally. This is something it experienced in previous cycles.
In his analysis, he zeroes in on OP’s tendency to form bullish ascending triangles at market bottoms. Once confirmed, can be followed up on what are often significant price advances.

According to Ali, OP is now establishing another ascending triangle pattern. It is bound to be preceded by a trend reversal and breakout rally in technical analysis.
Ali believes that OP could surge to a very bullish $7.20 on this basis. This is also at the 1.618 Fibonacci retracement level, the hotspot often seen in technical charting.
If OP can make it that far, that could equal a 340% gain. This would also have the potential to attract traders and investors.
Optimism Down Over 10% for the Day
Although the long-term forecast is bullish, OP has started to go down hard and fast. It shed over 10% in one day. For now, it trades at around $1.59, its price plummeting from its recent highs.
This has hurt market sentiment, and OP’s market cap and trading volume are falling. The current market cap is around $2 billion, and the 24-hour trading volume is around $671.25 million.
The sell off is a broader market correction, but Ali believes the downturn may signal OP’s bottoming process instead of a negative indicator.
Ali points out that forming an ascending triangle often results in these pullbacks as the pattern rallies to near support before breaking out.
In this case, now OP’s price movement around the lower boundary of the triangle could be favorable for a buy, hoping for a rally.
The Case for a Rally: Technical Analysis
Historically, OP technical indicators signal it may be nearing a big price move as the pattern of Fibonacci retracement levels it is following.
OP had previous cycles of breaking out of this setup, and the 1.618 Fibonacci extension needed to be tested after.
Ali’s chart further validates this trend. OP has rallied after consolidating in ascending triangles and heading towards predetermined key Fibonacci resistance levels.
The attached chart shows multiple instances of Optimism being on similar patterns at or around 1.618 Fibonacci.
These historical patterns indicate that Ali’s forecast that OP can hit $7.20 is accurate. After the token formed and broke out of ascending triangles, it has likewise hit these levels.
In technical analysis, the 1.618 Fibonacci extension tends to be a bit of resistance, which makes it a very realistic take-profit target for traders and investors looking for it as a potential profit target.
This can be seen from the latest series of red candle stick patterns as the price breaks below the ascending channel.

On the other hand, at 21.41, the ADX reading indicates OP to be in a phase of low trend strength; the asset is consolidating.
If OP breaks out and momentum strengthens, then the ADX will go up, which will mean strengthening momentum, confirming the validity of the ascending triangle and suggesting a strong trend to the upside.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#OP #Optimism

Hello, Skyrexians!

We continue analyze altcoins with big potential for the bull market. Couple of days ago we have already observed another one layer 2, today it's time for $OP . Price of this crypto formed very interesting formation which can confuse most of traders. We analyzed it using the combination of Elliott waves analysis with our algorithmic indicators. Hope it will give you enough knowledge to make your own decision.

On the price chart you can see the weekly time frame. We can consider all movements as the large accumulation zone because Optimism appeared in the most severe stage of past bear market. Its first growth is more likely to be the wave 1. After that we can see almost the same formation as for Arbitrum. This is the irregular correction in the wave 2, which consists of ABC waves. 

Wave C is likely to be finished. It touched the 0.61 Fibonacci retracement zone and Bullish/Bearish Reversal Bar Indicator [Skyrexio] printed the green dot. This is very high probability long setup. You can see earlier on the chart that this indicator flashed the red dot and after that we have see the huge bearish wave. We need to pay attention to its signals.

The next potential move is the global wave 3. It can happen very fast and the target for it is defined by the Fibonacci extension. This is the zone between $7.71 and $11.68. Lower band of the zone is almost 10x from the current price.

Best regards,
Skyrexio Team

___________________________________________________________
Please, boost this article and subscribe our page if you like analysis!
#Optimism #OptimismFoundation #CryptocurrencyCulture

Some friends were discussing Based Rollup, mostly from a security perspective. Here, I’ll share my views on Based Booster Rollup from the perspective of L1 and L2 relationships and application building.
The idea behind Based Rollup is straightforward: users submit L2 transactions directly to L1, where L1 handles the sorting and packaging. However, L1 doesn’t verify transaction validity, only ensuring transaction order and availability. L2 is a purely execution layer, processing the L2 transactions packaged on L1. If this setup feels familiar, it’s because it resembles the Inscription model. In fact, you can think of Inscription’s Indexer as L2 in this context—a point I discussed in my article “Is Inscription a Bug or a Feature?”
Booster Rollup takes a different approach: how can L2 directly read L1’s state via contracts? Since Based Rollup is already executing L2 transactions on L1, why not have it process L1 transactions as well? This way, L1 and L2 states can exist within a unified state tree, allowing L2 contracts to directly access L1’s state.
This has led to projects merging Based Rollup and Booster Rollup, collectively referred to as Based Booster Rollup (BBR), as seen with projects like #Taiko .
Background of BBR
The growing interest in BBR stems largely from the current fragmentation in Ethereum’s mainstream L2 solutions. This fragmentation occurs between L1 and L2, and among L2s themselves. The current L2 solutions operate similarly to an Alt-L1, relying on oracles to access L1 data, bridging assets, and requiring network switching in wallets. Additionally, the bond between L1 and L2 isn’t always strong, and L2s could easily implement their own consensus mechanisms to become Alt-L1s, effectively operating independently.
Would replacing all current L2 solutions with Based Rollup fix this fragmentation? #Optimism and #Arbitrum might argue that it’s feasible since major L2 solutions have Force Inclusion mechanisms that remove the Sequencer, enabling users to send transactions to L1 directly and achieve Based Rollup.
However, while Arb and Op do submit transactions to L1 in real-time for sorting, they still remain fragmented, as they only recognize their transactions. The key to solving this fragmentation with Based Rollup lies in having a protocol that enables shared transactions or data across L2s, with data that:
1. Has a format independent of platform or implementation, defined at the L1 level, since different L2s vary in accounts and virtual machines.
2. Is accepted by multiple L2s.
Hence, protocol design must come first, creating a shared data format that L2s can agree on, and leaving only essential protocol data on-chain, with execution and verification occurring off-chain. This direction has proven challenging as Ethereum developers typically design protocols using smart contracts rather than data formats. The main attempt here was Ethscriptions during the previous Inscription craze.

From BBR to BBSR: Stackable L2
Once data-sharing issues are tackled, user experience becomes a concern. Directly submitting all transactions to L1 would resemble using L1 in terms of gas fees and confirmation time. To improve this, some have designed pre-confirmation protocols for Based Rollup, though implementing such protocols effectively reintroduces Sequencers, undoing some of the simplifications.
This contradiction arises from conflating three types of transactions:
1. L1 transactions directly submitted and executed by L1.
2. L1.5 transactions submitted to L1 but not immediately executed by L1, facilitating L2 data-sharing protocols.
3. L2-specific transactions submitted to L2 Sequencers for pre-confirmation and execution.
Based Rollup is only relevant to the first two types, whereas the third falls under the current Sequencer Rollup model. These can coexist. Imagine a Rollup model where:
1. The Sequencer automatically syncs and executes all L1 (including L1.5) transactions in the L1-defined order.
2. The Sequencer receives and mixes L2 transactions with L1 transactions for sorting and execution.
In this setup, 1 enables Based and Booster functionalities, while 2 achieves quick L2 transaction confirmation without sacrificing user experience. I’ll call this the Stackable L2 model, where L2s stack on L1 and incorporate all L1 transactions and states. This approach is being implemented by Rooch Network.
Ensuring Data Availability (DA) for L2 Transactions: Rollup or Rollout?
With this model, it becomes redundant for L2 to package its transactions for submission to L1, as they’d repeatedly execute the same data. Thus, Rooch’s solution uses Rollout instead of Rollup, conserving L1’s valuable block space by leaving it to L1 and L1.5 transactions, while L2 transactions expand onto alternative block spaces, benefiting the entire ecosystem.
Bitcoin Ecosystem’s BBSR/Stackable L2 Practice
This description so far is from an Ethereum viewpoint. However, as the first BBSR or Stackable L2 practice on Bitcoin, Rooch leverages some unique advantages.
Bitcoin L2 lacks Turing-complete smart contracts, making the Based Rollup model ideal, as it only requires permissionless DA. Bitcoin’s projects, such as Colored Coins, RGB, Taproot Assets, and Ordinals Inscription, have long adopted data-structure-based protocols, fitting well within the broad CSV (Client-Side Validation) framework and exemplifying typical L1.5 transactions. If Ethereum projects adopt Based L2, their protocols might look similar.
In Rooch’s Bitcoin-based BBSR model:

1. Users submit both L1 and L1.5 transactions to Bitcoin.
2. Rooch syncs all L1 transactions, processes UTXOs, identifies transactions with protocol data, and executes them with specific modules (e.g., ord module for Inscription transactions).
3. Users submit L2 transactions directly to Rooch’s Sequencer, with results combined into a complete state tree that application contracts can fully utilize.
This model supports two transaction types: public protocol transactions (Based, on L1) and application-specific transactions (Sequencer-sorted), combining Booster benefits with permissionless protocols and user experience improvements.
The public protocol design, requiring time and practice to validate and reach consensus, has a convenient test environment with Rooch, where designing a Bitcoin application protocol is as simple as defining the format and deploying the corresponding Move contract.
The Value of L1 as a Global Data Bus
Since DeFi Summer, the crypto industry has sought non-DeFi applications. The recent Inscription craze and Based Rollup discussions reveal a rediscovery of L1’s value as a data bus. In decentralized systems, data buses enable system decoupling—a key condition for permissionless operations. Applications only need to upgrade transaction protocols to application-specific transactions for minimal impact on existing systems.
This article has focused on BBR from an ecosystem and application perspective. Later, we’ll explore BBR security, L1-L1.5-L2 interoperability, and related topics in further detail.

The development of #Optimism technology is attracting more and more major players in the crypto industry, strengthening the project's position as a leader among Layer-2 solutions for the Ethereum network.

Large companies choose Optimism

After the successful launch of Coinbase's Base network, new projects continue to join the Optimism ecosystem. Uniswap, Sony and Kraken have announced plans to deploy their own Layer-2 networks based on OP Stack technology.

Layer-2 is an additional blockchain layer that runs on top of the main Ethereum network. These solutions allow transactions to be processed outside of the core network and the resulting data to be transmitted into it.

Layer-2 networks play a key role in the development of the Ethereum ecosystem by enabling faster and cheaper transactions. Second only to bitcoin in terms of capitalization, Ethereum remains the leading platform for smart contracts, decentralized exchanges, and credit protocols.

Expansion strategy through grants

The Optimism Foundation actively supports new projects by allocating significant amounts in OP tokens. The Kraken exchange recently received a grant of 25 million OP tokens (about $42.5 million) to develop its Ink network.

As of September 30, the Optimism partnership fund has:

-- 841 million OP tokens to fund projects
-- 480 million OP tokens have already been distributed
-- 361 million OPs remain available (about $480 million at the current exchange rate of $1.32)

Expert Opinion

Offchain Labs CEO Steven Goldfeder notes the differences in approach, “There is a strategy focused on announcements and a strategy focused on real success and metrics on the web. Our strategy is to support real users and developers.”

Andrew Koller, creator of Kraken's Ink network, explains the choice of OP Stack: “We wanted to focus on the user experience without worrying about the complexities of blockchain management. So Optimism was an obvious choice.”

Results and outlook

Despite a 65% drop in the value of the $OP
token this year, this is less than the decline in other major Layer-2 tokens - MATIC from Polygon (-70%) and $ARB
from Arbitrum (-72%). Meanwhile, Ethereum's price is up 6% YTD.

The Optimism ecosystem continues to expand, attracting new participants and strengthening its position in the segment of Layer-2 solutions for Ethereum.
#BIOProtocol

This year, the Ethereum derivatives market is rapidly gaining momentum due to falling fees, made possible by the widespread adoption of Layer-2 solutions. Previously, high transaction fees have hindered the growth and development of such protocols, but new technologies have changed the situation.

Layer-2 networks such as Arbitrum and #Optimism have significantly improved the availability and convenience of trading by making transactions faster and cheaper. This progress has attracted new users and increased competition between decentralized platforms offering derivatives.

IntoTheBlock analysts note that this expansion is largely due to the growing interest in more complex financial products among crypto investors. As the market matures, participants are increasingly turning to derivatives to hedge risk and increase returns, which adds #liquidity and stability to the ecosystem.

Layer-2 solutions have not only made transactions cheaper, but also improved overall transaction security. The reduced load on Ethereum's core network further supports the development of DeFi's infrastructure, increasing trading volume and driving innovation in the space.

Experts believe that with the further development of Layer-2, solving scaling issues will be key to accelerating the adoption of decentralized derivatives. The growth potential remains huge, especially with the emergence of new projects that intend to make the sector more accessible and transparent. If the current trend continues, the Ethereum derivatives market could become a powerful competitor to traditional financial solutions, offering more flexible and efficient solutions for hedging and speculation.
#BIOProtocol

According to Foresight News, Optimism announced today that approximately 22 million OP tokens will be transferred between wallets controlled by the Optimism Foundation. This is an internally planned transaction, shared as a reminder to keep the community informed about the situation.