Ethereum scaling solution Optimism price gears for recovery with this bullish catalyst from Worldcoin
- OpenAI CEO Sam Altman announces plans to migrate World App from Polygon to Optimism mainnet.
- The cryptocurrency wallet by OpenAI was launched on May 8 and has more than 500,000 active users.
- Optimism (OP) price dropped 50% below its all-time high of $3.22, a bullish catalyst is likely to trigger a recovery in the layer 2 token.
Sam Altman, the CEO of an American Artificial Intelligence Research Laboratory (OpenAI), launched an encryption startup Worldcoin. One of the key products of Worldcoin is a cryptocurrency wallet, known as the World App.
The application was launched as a Polygon-network based wallet to facilitate purchase, sale, and storage of cryptocurrencies for World ID users, and is now ready to migrate to Optimism’s mainnet. Both Polygon and Optimism are Ethereum scaling solutions and competitors in the crypto ecosystem.
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World App gears for migration from Polygon to Optimism mainnet
Sam Altman’s encryption startup Worldcoin had chosen Ethereum’s largest scaling solution Polygon to launch its cryptocurrency wallet on May 8. However, Altman has announced the migration of the crypto wallet app from Polygon to Optimism’s mainnet for higher scalability.
World ID & World App are coming to the @OptimismFND Mainnet https://t.co/0utgzeWihY
— Worldcoin (@worldcoin) May 11, 2023
The crypto wallet was launched on May 8 and has nearly 500,000 active users worldwide so far. Altman’s encryption startup Worldcoin has been aligned with layer 2 scaling protocol Optimism since December 2020.
In 2020, the team started working on Hubble, an optimistic rollup originally started by the “Privacy and Scaling Explorations team” at the Ethereum Foundation. The beta of the World App was launched using Hubble, and the team moved it to Polygon’s Proof-of-Stake for scalability and cheap transaction fees.
Optimism OP price is poised for recovery with the bullish catalyst
Optimism (OP) yielded nearly 9% losses for holders since Wednesday. The layer 2 token could begin its recovery with the migration of Altman’s World App to Optimism’s mainnet. OP is currently in a downward trend, the price declined below support at 61.8% Fibonacci retracement of the $0.64 - $3.27 rise at $1.647.
In the event of its recovery, OP faces immediate resistance at the 10- and 200-day Exponential Moving Averages (EMAs) at $1.841 and $1.922, respectively.
The 50% Fibonacci level at $1.958 and the 20-day EMA at $2.177 act as resistances for the layer 2 token.
OP/USD one-day price chart
If OP nosedives below support at $1.584, a level that acted as support for the layer 2 token since the beginning of 2023, it would invalidate the bullish thesis. The downside target is the 78.6% Fibonacci level at $1.205, previously seen in the first week of January 2023.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
