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INJ Price Reaches New All-Time High Above $50 – Where to Next?

Last Updated March 13, 2024 11:41 AM
Valdrin Tahiri
Last Updated March 13, 2024 11:41 AM

Key Takeaways

  • The INJ price reached a new all-time high price of $52.92 on March 13.
  • INJ was one of the biggest gainers in the cryptocurrency market in 2023.
  • After an increase that has been ongoing for more than 600 days, is INJ nearing its cycle top?

The INJ price had been correcting since its previous all-time high of $44.86 on December 22, 2023. The price consolidated for 83 days before it finally broke out from the $43 resistance area yesterday.

While there is growth in the network, long-term readings indicate the rally is over-extended. Since the upward movement has been ongoing for more than 600 days, it leads to the question as to whether the INJ price is approaching its cycle top.

INJ Price Reaches New All-Time High

The INJ price started a significant bullish run in the start of 2023, which culminated with a high of $44.86 in December. The INJ price corrected in the first two months of 2024 but started another upward movement in March. Today, the INJ price reached a new all-time high of $52.92 before falling slightly.

The wave count suggests the price is nearing the top of its bullish cycle that started in July 2022. It indicates that the price is in sub-wave five (white) of wave five (black). Wave five has had the same length as waves one and three combined, reaching a possible level for a top.

Injective Price All-Time High
INJ/USDT Weekly Chart: Credit – TradingView

Despite the all-time high, indicator readings show weakening momentum for INJ. Both the MACD and RSI have generated bearish divergence (green lines), indicative that the price breakout is not supported by an increase in momentum. This often occurs at the end of bullish cycles. In the case of INJ, it aligns with the wave count.

Since the readings are from the weekly time frame, it is possible the price will continue increasing in the short-term before reaching a top.

Has INJ Reached Its Cycle Top?

The daily chart suggests the INJ price will continue increasing toward the second target before it reaches the cycle top. This analysis derives from the price action, wave count, RSI and MACD.

Yesterday, INJ broke out from an 83-day horizontal resistance area, creating a bullish candlestick. The area can serve as a determinant as to whether the trend is bullish or bearish.

Injective Wave Count Cycle Top
INJ/USDT Daily Chart: Credit – TradingView

The MACD and RSI both support the ongoing upward movement, since they are trending upward. Unlike the weekly time frame, neither has generated any bearish divergence.

As a result, the INJ price can increase by another 55% and move toward its next target of $76 before reaching its top. Despite these bullish readings, daily close below the area will mean that the INJ price has reached its top and will not increase toward the $76 target.

Injective Total Value Locked
Injective TVL, Price & Derivatives. Credit – DefiLlama

An interesting development is that the Total Value Locked in the protocol (blue) has not reached a new all-time high despite the price doing so.

This is akin to the period in December 2023 (red circle) which was followed by a price correction until the TVL eventually caught up and reached its all-time high.

Since February 19, there has also been a massive increase in derivatives volume  (red arrow). Injective facilitates decentralized derivatives trading  and enables users to engage in futures and options markets without intermediaries.

INJ Rally Could be in its Final Phase

To conclude, even though the INJ price has reached a new all-time high, long-term readings suggest the price is approaching its cycle top. INJ is likely in the final portion of its increase ongoing for more than 600 days that can take it up to $76 before a major correction ensues.

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