Date: Mon, February 17, 2025 | 05:45 AM GMT
In the cryptocurrency market, major altcoins have struggled to maintain momentum since the November rally. Rising Bitcoin dominance, uncertainty surrounding U.S. tariffs under Donald Trump, and the emergence of new memecoins tied to political figures have contributed to market hesitation.
Amid this turbulence, Cardano (ADA) and Injective (INJ) have also faced corrections, dropping 25% and 36%, respectively, over the past 30 days.
However, ADA has recently broken out and retested a key level, showing signs of a potential recovery. Interestingly, INJ appears to be setting up for a similar move.
Cardano (ADA)
On the 4-hour chart, ADA faced strong resistance at $1.16 on January 17, leading to a significant correction. This decline followed a Bump-and-Run Reversal (BARR) pattern, where the price plummeted to $0.51 (marked by the red circle) before rebounding.
Now, ADA has successfully broken out of the pattern by crossing the neckline and retesting it. This move, supported by the 100-day moving average (MA), has positioned ADA at $0.79 at the time of writing.
If ADA maintains its momentum and breaks above the 125-day MA, it could stage a strong recovery toward the $1 resistance zone.
The MACD (Moving Average Convergence Divergence) indicator has just triggered a bullish crossover, with the signal line (orange) crossing above the MACD line (blue). This suggests a potential shift in momentum, reinforcing the breakout scenario.
Injective (INJ) Analysis
Similar to ADA, Injective (INJ) has been trading within a Bump-and-Run Reversal (BARR) pattern since facing rejection at $26 on January 17. The correction pushed INJ down to $11.32 (marked by the red circle), but the price has since rebounded.
Currently, INJ is trading at $15.32, near the pattern’s neckline resistance. If it follows ADA’s movement, a breakout and successful retest could send INJ toward the 125-day MA resistance. A move beyond this level would further validate a recovery, with the next major resistance at $21.17.
The MACD indicator is showing early signs of a bullish shift, similar to ADA. A clear crossover above the zero line would confirm positive momentum, potentially leading to an upside breakout.
What’s Ahead?
Both ADA and INJ are showing signs of recovery from their recent corrections. ADA has already broken out and retested a key level, while INJ is still approaching its breakout point. The MACD indicators for both tokens suggest a shift in momentum, reinforcing the potential for upside movement.
However, traders should watch key resistance levels closely. If ADA and INJ fail to sustain their breakouts, a rejection could lead to further consolidation.
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