Injective Protocol (INJ) Rallies 7% After Touching Ascending Support — Will a Breakout Follow?
INJ rises amid market slump. Can it make a breakout above its significant descending resistance and signal a new bullish phase?
Key Takeaways
- Bitcoin holds $60,000, hinting at potential bullish reversal.
- INJ gained 28% and successfully retested the key $15 support level.
- RSI and MACD indicators show bullish momentum for INJ.
The cryptocurrency market is showing signs of volatility, but Injective Protocol (INJ) is bucking the trend.
After touching its ascending support level, INJ has rallied 7% and is now looking to build on its momentum. With Bitcoin holding steady at around $60,000, the stage is set for a potential breakout in INJ.
With technical indicators flashing bullish trends, is INJ poised for a breakout?
INJ Price Analysis
Following a remarkable five-wave impulse that began in January 2023, INJ reached an all-time high of nearly $54 on March 14. However, the excitement was short-lived, as the price action subsequently reversed and formed a descending triangle, indicating a potential correction.
A closer examination of the wave structure within the triangle revealed a complex ABCDE correction, which culminated in a low of $13.60 on Aug. 5.
Notably, the daily chart RSI plummeted to an oversold reading of 26%, while the MACD formed a bullish golden cross on Aug. 13, hinting at the possible onset of a new uptrend.
Since its recent low, INJ has staged an impressive 38% rebound and is now trading just below $19. Crucially, this marks a mere 7% distance from the descending resistance level, setting the stage for a potential breakout attempt.
INJ Price Prediction
Zooming into the hourly chart, we can see that INJ made a three-wave increase from Aug. 5 and proceeded to trade sideways from Aug. 10. This ascending channel could be its wave 4 out of the bullish five-wave move. In that case, we can anticipate another higher high that will bring INJ to the descending resistance.
Since there isn’t much room for growth in this advancement, the price will likely get rejected but form a higher low above $16.50, where the 0.618 Fibonacci retracement level is. Should this play out, we will receive the confirmation needed to expect a decisive breakout in the next advancement.
But if the price breaks below the currently seen ascending channel’s support, it would mean that the rise from Aug. 5 ended on a three-wave move and would be interpreted as a corrective increase before further decline.
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