Injective bulls battle to protect $6.41 support – But sellers have the upper hand
Injective has broken out of a cup and handle pattern, and so long as it defends the breakout area around $6, a rally to $18 appears likely.
Injective [INJ] is a buying opportunity now, wrote popular crypto analyst and trader Ali Martinez. In the aftermath of the $6.3 billion Binance heist, the crypto market appeared to be on sale.
The altcoin has broken out past a cup-and-handle pattern. At the time of writing, the breakout area around $6 was being tested as support. If this demand zone is defended, the analyst expects a bull run towards $18.
Apart from technicals, he also cited the Injective expansion into real-world assets and privacy-focused infrastructure.
Moreover, 47% of the INJ supply has been staked. It improves the Proof of Stake INJ consensus by making a 51% attack prohibitively costly and also reflects long-term holder conviction.
Can Injective fulfill its bullish potential?
On the surface, a near 150% rally to $18 was not a tall ask. Injective achieved a bullish structure shift on the weekly chart in October 2023 when it climbed above $10.05 and surged 353% to reach $53 by March 2024, within just five months.
Context matters, though. Right now, the weekly structure is bearish, captured by the Fibonacci retracement levels. The price was at a former demand zone at $8, now considered a supply zone.
It has not yet climbed into the premium zone, or the area above the 50% level at $9.60. If it does, the long-term bearish bias would suggest swing traders and investors look for selling opportunities.
Injective as a buying opportunity
The OBV on the daily chart maintained its uptrend despite the retracement from $9.41 over the past ten days. The MACD was about to form a bearish crossover below the zero line.
While momentum favored the sellers, so long as the $6.41 low from early October is defended, Injective bulls have a chance at driving another rally to challenge $9.60.
Final Summary
- Injective has broken out of a cup and handle pattern, and so long as it defends the breakout area around $6, a rally to $18 appears likely.
- Such a rally could take months. For now, swing traders need to monitor the $6.41 support and $9.60 resistance that demarcate the higher timeframe premium zone.
