Injective (INJ) Retests August 2024 Low – 2 Scenarios for the Next Move

Key Takeaways

• Descending wedge breakout potential.
• Fibonacci retracement levels dictate key Support and resistance.
• Elliott Wave cycle is nearing completion.

Injective (INJ) is navigating a crucial phase after a prolonged correction from its previous high.

The daily time frame indicates a completed five-wave Elliott Wave cycle, followed by a retracement.

Meanwhile, the 1-hour time frame suggests the formation of a potential reversal or continuation pattern. 

INJ Price Analysis 

The daily chart of INJ reveals a clear five-wave Elliott Wave structure, culminating in a peak at $53 on Mar. 13.

Following this, the price entered a corrective phase, reaching a critical Fibonacci retracement level.

Currently, INJ is hovering above the $13.63 level, with the following key resistance aligning around $22.98 (0.236 retracement)—the 0.382 Fibonacci retracement at $28.76 marks a major hurdle for any sustained recovery. 

However, failure to maintain above $13.63 would invalidate the bullish case, exposing deeper downside risk.

The daily Relative Strength Index (RSI) remains in neutral territory, indicating a lack of momentum.

This suggests that INJ could still be in the latter stages of its corrective phase, with a potential consolidation before a breakout decision.

 A significant reclaim of the $22.98 level would be an early confirmation of renewed bullish momentum.

The descending trendline, which has capped price action for several months, is also a significant factor. A definitive break above this resistance could spark a bullish wave targeting the upper Fibonacci retracement levels.

INJ Price Prediction

The 1-hour chart provides a more granular look at INJ’s immediate trajectory. Following a completed corrective phase labeled as ABC, which started on Dec. 20, INJ has found short-term Support near $13.08 (0.786 Fibonacci extension). 

The price now attempts to build a base while facing downward pressure from a diagonal resistance trendline.

Two possible scenarios emerge from the current structure:

1. Bullish Breakout: If INJ successfully breaks above $15.97 (0.618 extension), it could aim for a rally towards $18.00 (0.5 Fibonacci extension). A further extension could see the price targeting $20 (0.382 extension). Completing an ABC corrective pattern suggests that a new impulse wave might be forming, with a potential recovery towards the $26 zone if buyers step in.
2. Bearish Breakdown: If INJ fails to hold above $13.08, the structure could extend into a more prolonged correction. A drop towards the 1.0 Fibonacci level at $9.40 is possible, marking the final stage of the ongoing retracement.

RSI on the 1-hour chart attempts to recover from oversold conditions, hinting at potential bullish divergence. However, confirmation of an uptrend would require a decisive breakout above the descending resistance.

While short-term uncertainty remains, a breakout above $15.97 would increase the likelihood of a reversal.

Conversely, failure to hold above $13.08 could accelerate bearish momentum.

Key Levels to Watch

• Immediate resistance: $15.97 (0.618 Fibonacci extension).
• Key resistance: $18.00 (0.5 Fibonacci extension).
• Major Resistance: $22.98 (0.236 Fibonacci retracement).
• Immediate Support: $13.08 (0.786 Fibonacci extension).
• Critical Support: $9.40 (1.0 Fibonacci extension).
• Short-Term Target: Above $22.98 if momentum sustains.
• Invalidation Zone: Below $9.40, signaling a deeper correction.