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Injective (INJ) Price Gains 22% Since January Low, Trend Signals Remain Mixed

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • Price is consolidation above ascending support.
  • Wave (iii) targets $34.00–$38.11 if support holds.
  • RSI signals neutral to mild bearish divergence.

The price action of Injective (INJ) presents a complex yet intriguing market structure, as depicted across the daily and hourly timeframes.

The daily chart highlights significant price movement within a broader corrective structure, while the hourly chart focuses on an emerging wave sequence that could dictate the next direction.

Applying Elliott Wave theory, Fibonacci retracements/extensions, and RSI momentum, this analysis breaks down potential scenarios.

INJ Price Analysis 

The higher timeframe chart (daily) showcases a descending wedge breakout that has transitioned into consolidation. INJ tested the $33.44 level (0.5 Fibonacci) before retracing below 0.236 Fibonacci retracement to a low of $19 on Dec. 20.

This retracement aligns with a broader corrective pattern but was a higher low, landing on the ascending support. 

KAS price analysis
INJUSD bounce from the ascending support | Credit: Nikola Lazic/Tradingview 

The Elliott Wave count suggests the conclusion of a five-wave impulse in March 2024 to an all-time high of $53, followed by a prolonged correction to a low of $13.70 in August.

The ascending support formed a key pivot point, maintaining the price within a larger upward trend structure. 

The Relative Strength Index (RSI) in this timeframe remains neutral, indicating a balance between buying and selling pressure.

From a broader perspective, the $28.76 (0.382 Fibonacci) and $33.44 (0.5 Fibonacci) resistances are pivotal in determining whether INJ can sustain its recovery. A failure to reclaim these levels could lead to a revisit of $20.13 (0.382 Fibonacci retracement of the larger move) or even $16.21 (0.618 retracement).

INJ Price Prediction

Zooming into the hourly chart, the price action is developing a recovery with two outcomes ahead.

Either a new impulsive Elliott Wave sequence started on Jan 13 at a low of $18, with the first wave (i) completed near $23.48. 

KAS price prediction
KASUSD two outcomes ahead | Credit: Nikola Lazic/Tradingview 

The anticipated retracement to $20.30 will provide further insight into these possible outlooks. 

If the Wave (ii) correction holds, the next upward move in Wave (iii) could target $28.76 (0.382 Fibonacci of the larger daily chart), $33.44 (0.5 Fibonacci), and beyond.

The Fibonacci extension projects Wave (iii) potentially reaching $34.00–$38.11, based on a 1.618 extension of Wave (i).

However, failure to maintain support above $20.13 could invalidate the bullish scenario, paving the way for deeper corrections, targeting $18.17 (0.5 retracement) or $16.21 (0.618 retracement).

RSI momentum in this timeframe suggests mild bearish divergence, signaling a potential retest of lower levels before a breakout attempt.

Key Levels to Watch

  • Immediate Resistance: $26.48 (Wave (i) high).
  • Major Resistance: $28.76 (0.382 Fibonacci retracement), $33.44 (0.5 Fibonacci retracement).
  • Immediate Support: $22.56 (0.236 Fibonacci retracement).
  • Critical Support: $20.13 (0.382 Fibonacci retracement), $16.21 (0.618 Fibonacci retracement).
  • Short-Term Target for Wave (iii): $34.00–$38.11 (1.618 Fibonacci extension).
  • Invalidation Zone: Below $16.21, signaling deeper bearish potential.
Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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