Date: Wed, February 5, 2025 | 06:22 PM GMT
Despite Bitcoin (BTC) maintaining strong momentum, major altcoins have been struggling to hold their ground. Since the November-December rally, many altcoins have undergone a steep correction, largely influenced by Ethereum’s (ETH) sluggish performance. ETH remains down over 30% in the last 60 days, failing to regain upside momentum.
Among the hardest-hit altcoins are Celestia (TIA) and Optimism (OP), both of which have experienced substantial drops of 64% and 59%, respectively, in the past two months. Now, they are at a critical juncture, testing key support levels.
Celestia (TIA)
Looking at TIA’s daily chart, the price action has been confined within a year-long falling wedge pattern. The most recent downward move began on December 7, following a rejection from the upper wedge resistance at $8.40.
The correction intensified after geopolitical uncertainties, including former U.S. President Donald Trump’s tariff war policies, triggered a sell-off across risk assets. This led TIA to test its crucial support trendline, reaching a low of $2.63 before making a slight rebound to its current price of $3.01.
Should TIA successfully hold this support and stage a rebound, the next resistance to watch is the 50-day SMA (Simple Moving Average). A breakout above this level could pave the way for a potential recovery toward the upper resistance trendline near $5.57.
Optimism (OP)
Similar to TIA, OP has been trading within a year-long falling wedge pattern. The latest leg of the downtrend began on December 7, triggered by a rejection at $2.74 from the wedge’s upper resistance.
The bearish pressure intensified, causing OP to drop as low as $0.78 before making a modest recovery to $1.07. Currently, OP is testing its critical support zone, and a successful hold at this level could lead to a relief rally.
If OP bounces from this support, it could attempt a recovery toward the upper wedge resistance at $1.74 in the near term.
Is a Bounce Back Ahead?
At present, both TIA and OP are testing their crucial support trendlines, showing signs of resilience. However, the next move largely depends on Ethereum (ETH) and Bitcoin dominance.
BTC dominance has risen sharply to 61.52%, which is keeping bearish pressure on altcoins. If Ethereum gains momentum or BTC stabilizes, TIA and OP could see significant relief rallies. Until then, traders should closely monitor these key support levels to assess whether a breakdown or a breakout is on the horizon.
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