Date: Tuesday, February 18, 2025 | 07:28 AM GMT
The cryptocurrency market has been showing mixed signs of recovery after weeks of correction, with notable altcoins attempting to regain lost ground. Bitcoin dominance has dropped by 1.20% over the past week, now sitting at 60.80%, suggesting that altcoins might be preparing for a rebound, though overall sentiment remains uncertain.
Among this, Optimism (OP) and Maker (MKR) are turning green in weekly performance after experiencing significant corrections of 39% and 36% over the past two months.
Both tokens have tested key support levels and successfully bounced, signaling the possibility of a trend reversal if bullish momentum continues.
Optimism (OP)
Looking at OP’s weekly chart, the price action has been confined within a year-long falling wedge pattern. The most recent downward move began on December 7, when OP was rejected at $2.77 from the wedge’s upper resistance, sending its price downward to test the support trendline at $0.79.
Currently, OP has managed to hold this support and bounced back to $1.18, indicating increasing buying pressure. The MACD is showing early signs of a potential bullish crossover, hinting at a possible reversal.
If OP maintains its momentum, it could attempt a recovery toward the upper resistance of the wedge at $1.80 and the 25-day Simple Moving Average (SMA) in the near term. A successful breakout from this wedge could shift the trend to a bullish outlook.
Maker (MKR)
Similarly, MKR’s weekly chart shows a year-long falling wedge pattern. The most recent decline began on December 2, after MKR was rejected at $2,424 from the wedge’s upper resistance. This led to a correction, with prices falling to the support trendline at $789.
Currently, MKR has held this support and bounced back to $1,064, showing signs of growing buying pressure. The MACD is beginning to curve upward, suggesting early signs of recovery.
If MKR continues its upward momentum, it could attempt a recovery toward the upper wedge resistance at around $1,600 and the 200-day SMA in the near future. A confirmed breakout from this pattern would signal a shift in trend towards a bullish structure.
Is a Trend Reversal on the Horizon?
Both OP and MKR are showing early signs of a bullish reversal, but their breakout will depend on broader market conditions. If Ethereum (ETH) continues its recovery and Bitcoin dominance declines further, it could provide more momentum for altcoins.
For now, traders should closely monitor key resistance levels and trading volume for confirmation before expecting a full-fledged recovery. A successful breakout from these wedge patterns could set the stage for strong gains in the coming weeks.
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