Optimism- Blockchain for Ethereum scaling

OP Mainnet is a low-cost and lightning-fast Ethereum L2 blockchain powered by Optimism. It is an EVM equivalent layer 2 blockchain designed to scale up Ethereum.

Optimistic rollup-

It is a layer 2 scalability technique that bundles multiple off-chain transactions in large batches on Ethereum's layer 1 into a single transaction. It helps to reduce gas fees and network congestion. Optimistic blockchain uses Superchain to improve scalability.

OP stack architecture-

It consists of five core concepts

Execution node- It can handle specific functionality on layer-2 rollups.

Rollup node- It includes sequencers and validators. Optimism block production is managed by a single party called a sequencer.

Op-batcher-This is the component that submits new transaction batches.

Op-Proposer- This is the component that submits new state roots for the L2 output.

Bedrock upgrade-

Optimism has completed "Bedrock" which helps to minimize the difference between the Ethereum mainnet and optimism layer. This helps to reduce lower transaction fees by 40% and to shorter deposit times.

Super chain-

It is network layer 2 blockchain networks that share a bridging protocol decentralized governance, upgrades, a communication layer, and more. It will help to merge Optimism mainnet and other chains into a single unified network of OP chains.

OPUSD prices jumped more than 50% from this week's low of  $1.95 after a surge in daily transactions. It hit a high of $2.98 at the time of writing and is currently trading around $2.90. The pair is holding above the short-term (21 and 55-day EMA) and above the long-term moving average (200-day EMA).

The near-term resistance is around $3.20, any indicative breach above will take the pair to $4/$4.25. On the lower side, immediate support is $2.50, and any violation below targets $1.95/$1.50.

Indicators ( Daily chart)

CCI(50)- Bullish

Directional movement index - Bullish

It is good to buy on dips around $2.50 with SL around $1.90 for TP of $4/$4.20.