Polygon vs Optimism: Which altcoin will Q3 favor?

Disclaimer: The knowledge offered doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• MATIC’s regulatory uncertainty dented its value efficiency.
• OP has seen huge accumulation since early June, in contrast to MATIC. 

The L2 options area has been below fierce competitors, with Arbitrum [ARB], Polygon [MATIC], and Optimism [OP] angling for a share. MATIC sustained extra regulatory strain on value efficiency, giving rivals like OP extra edge on the worth charts. So, evaluating Polygon vs Optimism is essential for 2023 Q3.

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Learn Polygon’s [MATIC] Value Prediction 2023-24

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For perspective, the bearish strain in Q2 noticed each altcoins breach key psychological ranges. MATIC dropped beneath a greenback whereas OP misplaced maintain of $2. Nevertheless, every token reacted in a different way to early Q3 restoration and will provide a glimpse into possible Q3 total value efficiency. 

Response to Bitcoin’s swings

In early June, the US SEC sued Binance and Coinbase for flouting federal securities regulation and enlisted a number of tokens as “safety.” The regulatory strain noticed BTC ease to $25k, up from $27k – an 8% drop. 

MATIC and OP registered huge drops in the identical interval. Notably, MATIC, labeled as a safety by US SEC, dropped from $0.90 and solely steadied close to $0.50 in the identical interval. That’s a 44% drop due to BTC’s losses and U.S. regulatory strain. 

In the identical interval, OP dropped from $1.5 to round $0.9 earlier than steadying close to $1. The drop led to a few 41% drop in worth. 

So MATIC shed extra worth than OP throughout the bearish and regulatory strain on the finish of Q2. However BTC outperformed each altcoins in the identical interval.   

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The image was barely totally different throughout the restoration part between mid-June and July. BTC rebounded strongly from $25k and reclaimed $31k amidst ETF-induced hype from institutional gamers. It rallied over 20% throughout the hype (15 – 21 June). 

The BTC upswing noticed OP hike over 40%, reversing all losses from early June. However MATIC solely gained about 20% and hit $0.67, means beneath its $0.90 earlier than US SEC labelled it safety. So, OP outperformed BTC and MATIC throughout the restoration. 

In July, BTC fluctuated between $29.5k and $31.5k after ETF hype dissipated. So, OP entered a short vary formation earlier than mounting above the June excessive ($1.55) after Ripple Labs’ authorized win. Additional upside was solely blocked by the D1 bearish order block (OB) of $1.63 – $1.88 (pink).  

Ripple Labs’ win additionally boosted MATIC. It soared nearer to $0.90 (June excessive). However each tokens confronted value rejection after BTC’s sharp drop in the direction of its range-low of $29.5k previously few days. 

Polygon vs Optimism: Q3 outlook

A possible hawkish stance may exert slightly bearish strain throughout subsequent week’s (25/26 July) FOMC assembly. MATIC may play protection on the $0.757, a December low aligned with a not too long ago invalidated bearish OB. 

For OP, bulls will give attention to $1.37, barely above the H12 bullish OB of $1.4 – $1.5 (cyan). OP thus has a agency bullish stronghold it may rebound from. 

Sadly, each tokens should clear essential overhead roadblocks (bearish OBs) to reclaim key psychological ranges of $1 (MATIC) and $2 (OP) to point out additional bullish intent in Q3. 

Promote vs purchase strain

Based mostly on Santiment’s 90-day Imply Coin Age metric, we are able to infer that OP has extra potential upside than MATIC on the time of writing. For perspective, the metric tracks the motion of tokens throughout addresses. 

If the metric rises, it signifies a wide-network accumulation, a transparent signal of gamers eager for a possible rally sooner or later. The alternative is true – the drop underscores promote strain. For MATIC, the latter holds.

Nevertheless, OP registered a steadily rising 90-day Imply Coin Age, a bullish cue if BTC maintains the 30k in Q3. 

Though there was a fluctuation in quantity for each tokens, OP noticed extra shopping for strain, whereas MATIC sustained promoting strain. The regulatory uncertainty round MATIC may additional give OP an edge on the worth charts.

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How a lot are 1,10,100 OPs price at this time? 

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Who’s more likely to ace Q3?

Based mostly on the above indication, within the race between Polygon vs Optimism, the latter may ace in Q3, given its huge accumulation witnessed from early June and MATIC’s regulatory uncertainty. 

Furthermore, OP dealt with early June’s huge promote strain higher than MATIC. After that, the restoration noticed OP outperform BTC and MATIC on the worth charts. So, OP may provide additional good points and maintain extra bearish strain than MATIC in Q3.