Injective (INJ) Price Gains 54% in September After Key Breakout
INJ price in an uptrend from Sep. 6 but is now showing signs of struggle.
Key Takeaways
- INJ reaches an all-time high and then forms a descending triangle.
- Wave structure shows a potential bullish shift after the Aug. 5 low.
- Future trend hinges on current resistance breakout or downturn
INJ has experienced significant price movements this year, from reaching an all-time high in March to forming a descending triangle and a subsequent bounce.
This analysis breaks down INJ’s key price levels, wave structures, and possible future scenarios as the price rises but shows signs of being overbought.
Injective Price Analysis
On March 14, the Injective (INJ) price reached an all-time high of nearly $54, completing a five-wave impulse in January 2023. This rally was followed by a sharp decline, forming a descending triangle pattern.
Within this triangle, the wave structure appears to follow an ABCDE correction, reaching a low of $13.60 on Aug. 5.
At that point, the daily Relative Strength Index (RSI) dipped to 26% oversold, while a golden cross formed on the MACD on Aug. 13, suggesting the possible onset of a new uptrend.
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Since hitting its recent low, INJ has risen and reached $23.
The 66% increase in attempting to break above the descending resistance ended as a fakeout, leading to a sharp downturn to $15.20 on Sept. 2. This low is higher than Aug. 5, indicating a potential bullish shift.
The price made another upturn, leading back to its prior high of $23, but the daily RSI is now signaling overbought conditions.
INJ Price Prediction
A closer look at the hourly chart reveals that INJ rallied in five waves from its Aug. 5 low to the $23 high.
The subsequent pullback reached the 0.786 Fibonacci level, from which a bounce occurred.
The following recovery has returned the price to its previous high and is still on an upward trajectory.
These patterns typically indicate trend continuation, and given the five-wave uptrend followed by a higher low retracement, its recent 54% uptrend could be the wave 3 of the higher degree count.
However, another possibility is that the uptrend won’t continue and will end shortly, as we can already count a five-wave pattern of a lower degree count. What happened in the current area will dictate the future outlook.
Further uptrend continuation could lead INJ to a 1.618 Fib extension at $30, in which case a larger uptrend will be validated. But if the price worsens, it could mean INJ will see lower values than on Aug. 5.
Read more: Injective Price Prediction 2024
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