Date: Thu, February 6, 2025 | 05:41 AM GMT
Despite Bitcoin (BTC) maintaining strong momentum, major altcoins have struggled to hold their ground. Following the November-December rally, many altcoins have undergone steep corrections, with the latest drop exacerbated by increased tariffs imposed by Donald Trump, adding further bearish pressure.
Among the hardest-hit altcoins are Injective (INJ) and Immutable (IMX), both of which have experienced a correction of over 55% in the last 60 days, bringing them to key support levels.
INJ and IMX Tokens Prices
Injective (INJ)
The weekly chart for Injective (INJ) indicates consolidation within a descending triangle and a falling wedge pattern. The recent downtrend, which started on December 2, was triggered by a rejection at the upper resistance trendline around $35.32.
Injective (INJ) Weekly Chart/Coinsprobe (Source: Tradingview)
This decline pushed INJ down to a major support zone within the triangle, reaching a low of $11.78, aligning with the wedge’s lower boundary. However, the price has held firm and is now trading around $14.10. Earlier, this level has acted as a strong rebound zone, and if history repeats itself, INJ could see a bounce from this support.
A breakout above the 25-day SMA would confirm further bullish momentum, with the upper resistance trendline as the next key target.
Immutable (IMX)
Similar to INJ, the weekly chart for Immutable (IMX) reveals a descending triangle and a falling wedge in play. The latest downtrend began on December 2, following a rejection from the upper resistance trendline at $2.24.
Immutable (IMX) Weekly Chart/Coinsprobe (Source: Tradingview)
This decline dragged IMX down to a crucial support level around $0.648, aligning with the wedge’s lower boundary. However, the price has stabilized and is currently trading around $0.815. Previously, this level has served as a strong rebound zone, and if buyers step in, IMX could see a bounce from here.
A breakout above the 25-day SMA would open the door for a test of the upper resistance trendline in the coming weeks.
Is a Bounceback Ahead?
Both INJ and IMX are showing resilience at their key support levels. Their next moves will largely depend on Ethereum (ETH) and the broader crypto market sentiment. If ETH continues its recovery, it could provide the momentum needed for altcoins like INJ and IMX to confirm a breakout and start a new bullish trend.
The MACD on both charts is bearish but showing signs of weakening momentum, indicating a potential reversal if a bullish crossover occurs.
Final Thoughts
While INJ and IMX are holding critical support levels, a confirmed trend reversal will require strong bullish momentum. Traders should watch for breakouts above the 25SMA, as they could indicate the start of a recovery phase.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
