In the cryptocurrency market this week, major altcoins are showing signs of recovery after facing a significant correction over the past 60 days.
Injective (INJ) Token
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. 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 $21.16 and $26.66, which represents a 68% increase from the current price level.
Optimism (OP) Token
Optimism (OP) is also following a similar falling wedge pattern, 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. 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 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.
