Cryptocurrency Market Update

Cryptocurrency prices were mixed last week amid concerns about tariffs, interest rates, and the $1.4 billion Lazarus Group hack on Bybit.

Bitcoin (BTC) price remained below $100,000, while Ethereum (ETH) fell below the $3,000 mark. The crypto fear and greed index shifted to neutral, with Bitcoin’s dominance at 60%. This article delves into why Bitcoin, Optimism (OP), and Sui (SUI) will be highlighted this week.

Bitcoin

Bitcoin, the largest cryptocurrency, is under the spotlight this week as technical indicators suggest an upcoming breakout or breakdown. The daily chart shows a symmetrical triangle pattern forming over the past few weeks.

The two lines of this triangle pattern are converging, hinting at potential volatility this week, especially as it marks the end of the month. Key support and resistance levels to monitor are $88,960 and $109,100. A fall below $88,960—its lowest level in January—could lead to further declines, possibly hitting $73,350, the peak from March last year. Conversely, a strong rally above $109,080 could bring gains to $110,000, followed by $122,000.

Optimism

Optimism, a major layer-2 project in cryptocurrency, will be in focus as it conducts a significant token unlock this week. On Wednesday, it will release over $38 million worth of tokens, equating to 2% of the circulating supply. This is a noteworthy, though not drastic, increase.

Additionally, daily token unlocks of 257,000 OP tokens worth over $303,000 will occur. Currently, the OP price is at a crucial level, trading at $1.077, the lowest since August last year. A bearish flag pattern suggests potential declines, with targets at $0.791—the lowest level on February 3.

Optimism was established by the Optimism Foundation, a non-profit founded by Jinglan Wang, Karl Floersch, and Ben Jones, and launched in May 2022. The OP token supports governance and incentives within the Optimism Collective, which aims to fund public goods and decentralization initiatives.

Sui

Sui, a leading layer-1 network, will also gain attention this week as it unlocks tokens valued at $111 million, representing 1.07% of the total circulating supply. So far, 39% of all tokens have been unlocked, with the final batch expected in 2069.

The SUI token has witnessed a 38% drop from its January peak and is trading below the 50-day moving average, indicating bearish momentum. However, it has formed a falling wedge pattern—a common reversal signal—and a small double-bottom formation, suggesting a possible rebound in the coming weeks. A dip below the support level at $2.91 would invalidate this bullish outlook.

The Sui Layer-1 network was developed by Mysten Labs, founded in 2021 by former Meta engineers involved with the Diem blockchain and Move programming language. The leadership team includes CEO Evan Cheng, CTO Sam Blackshear, and co-founders George Danezis, Avery Ching, and Kostas Chalkias. The SUI cryptocurrency enables gas fees, staking for security, governance participation, and DeFi applications.