Optimism Bedrock Launch Date Announced, Will It Pull OP Price Out Of Its Rut?

Optimism revealed the launch date of its next update, but OP price continued to crab
Optimism revealed the launch date of its next update, but OP price continued to crab

Key Takeaways:

  • Optimism announced the release date for its upcoming Bedrock upgrade
  • OP price action has been mediocre recently after dropping over 32% in May

NEW DELHI (CoinChapter.com) — Optimism, an Ethereum scaling solution, has announced the release date for its Bedrock hard fork. The Optimism Foundation proposed the fork in Feb this year, with community approval coming in April.

The Layer-2 blockchain platform has set June 6 (at 1600 UTC) as the date for the upgrade. According to Optimism’s announcement, the Bedrock upgrade will require about 2-4 hours of downtime for the OP Mainnet.

Deposits and withdrawals would be unavailable during the OP Mainnet downtime.

The upgrade would require nearly four hours of downtime.
The upgrade would require nearly four hours of downtime.

The Bedrock upgrade is a “complete re-architecture of the OP Stack to production,” according to the Optimism team. A key improvement would be a nearly 47% decline in protocol costs and transaction fees on the scaling platform.

The upgrade uses a compression algorithm, zlib, to better utilize the available space on the Layer-1 blockchain. As a result, the upgrade would lower the L1 data fee and, thus, the overall transaction fees through the Bedrock upgrade.

Additionally, the upcoming fork would help improve the node software performance. Bedrock would enable the execution of multiple transactions in a single roll-up block. Moreover, the upgrade would introduce security enhancements, including a two-step withdrawal process to counter exploits.

Optimism claims that Bedrock has a high Ethereum equivalence, which is to say developing in Bedrock would be similar to working on the Ethereum blockchain. The L2 blockchain stated that higher Ethereum equivalence would make it easier for developers.

Additionally, the Bedrock upgrade would benefit Optimism Superchains, a network of blockchains built on the OP stack.

OP Price Action Remains Mum Despite The Bullish News

Meanwhile, the OP token price continued crabbing, despite the announcement of the Bedrock upgrade date. Often, news of an upcoming update attracts buyers to the market, which could help OP price start a rally.

Long wicks on both ends and thin bodies of the Optimism token price’s recent daily candles suggest the market remains indecisive. OP price rebounded off the lower trendline support of a multi-month descending parallel channel on May 12.

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Hence, it is likely that more buyers in the market could push OP prices to follow historical trends and rally toward the upper trendline resistance. However, failure to break out of the channel could stark a reversal that might force OP prices to pare 2023 gains.

OPUSD daily chart with parallel channel and RSI
OPUSD daily chart with parallel channel and RSI. Source: Tradingview.com

The Optimism token has not had a good month, falling 32.3% since May 1 to form a daily low of $1.604 on May 16. Further downtrend might result in OP price dropping to its support level near $1.54.

Failure of the immediate support level could send the OP token price to test the support level near $1.42 before recovering.

However, the RSI for OP has almost become oversold, clocking at 31.35 on the daily timeframe. Oversold RSI levels usually precede a trend reversal in bulls’ favor, which might attract more buyers to the market.

An uptrend would require bulls to push OP price above the immediate resistance near $1.73 before targeting the 200-day EMA (green wave) resistance near $1.91.

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