Date: Sun, February 23, 2025 | 05:32 PM GMT
In the cryptocurrency market this week, major altcoins are showing signs of recovery after facing a significant correction over the past 60 days. BTC dominance has cooled down to its current level of 60.71% from the weekly high of 61.52%, creating room for altcoins to regain lost ground.
This shift has allowed liquidity to flow into altcoins, with Injective (INJ) and Optimism (OP) coming into the spotlight with noticeable gains after facing significant corrections in the last two months.
Both tokens are approaching key resistance levels within their falling wedge patterns, and potential breakouts could lead to further upside movement.
Injective (INJ)
INJ’s daily chart highlights a falling wedge pattern that formed after a sharp rejection from the December 5 high of $35.96. The correction saw INJ plummet to a low of $11.93, where it tested the lower trendline of the wedge.
However, INJ has now rebounded to $15.96 and is inching towards the upper resistance of the wedge. If the price breaks out and successfully retests this wedge, the next key resistance lies at the 50-day moving average.
A decisive move beyond this level could lead the price to the next resistance levels of $21.16 and $26.66, which represents a 68% increase from the current price level.
Optimism (OP)
Optimism (OP) is also following a similar falling wedge pattern to INJ, which formed after a sharp rejection from the December 7 high of $2.77. The correction saw OP plummet to a low of $0.78, where it tested the lower trendline of the wedge.
However, OP has now bounced to $1.18 and is inching towards the upper resistance of the wedge. If the price breaks out and successfully retests this wedge, the next key resistance lies at $1.50 along with the 50-day moving average.
A decisive move beyond this level could push the price to the next resistance level of $1.81, which would be a 52% increase from the current price level.
Final Thoughts
Both INJ and OP are demonstrating resilience at their respective support levels, hinting at the possibility of a trend reversal. However, their next moves will largely depend on the broader market, particularly Ethereum (ETH) and Bitcoin dominance.
If ETH continues its recovery and BTC dominance starts to decline, it could provide additional momentum for altcoins, helping INJ and OP break out of their wedge patterns and confirm a bullish shift.
For now, traders should closely monitor breakout confirmations, as these could signal the next major move for both tokens.
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