Despite Bitcoin holding strong, many altcoins face corrections following a recent rally and heightened market pressures.
Injective (INJ) Analysis
The weekly chart for Injective (INJ) shows consolidation within a descending triangle and falling wedge pattern. The recent downtrend starting on December 2 was triggered by rejection at the upper resistance trendline around $35.32. This decline pushed the price down to a major support zone around $11.78, aligning with the wedge’s lower boundary. However, the price has held firm and is now trading around $14.10, which previously acted as a strong rebound zone. This level may serve as a base for potential growth if there is a breakout above the 25-day SMA.
Immutable (IMX) Analysis
A similar pattern is observed on the chart for Immutable (IMX), featuring a descending triangle and a falling wedge. The latest downturn began on December 2, following a rejection from the upper resistance trendline at $2.24. The correction brought the price down to a critical support zone around $0.648, aligning with the wedge’s lower boundary. Now, the price has stabilized and is trading around $0.815. This level previously served as a rebound zone, and if buyers step in, a price increase might follow.
Potential Bounceback
Both INJ and IMX are showing resilience at key support levels. Their next movements will largely depend on the broader crypto market sentiment and Ethereum (ETH) trends. If ETH continues its recovery, it could provide the momentum needed for INJ and IMX to start rising. The MACD indicator on both charts remains bearish but shows signs of weakening, indicating a potential reversal.
While INJ and IMX hold significant support, confirmed trend reversal will require strong bullish momentum. Traders should watch for breakouts above the 25SMA as a signal for the start of a recovery phase.
