Injective’s INJ token has been on a remarkable run, hitting an all-time high of around $52 just a few days ago. However, the cryptocurrency is currently facing a significant correction, plunging 12% today amid a broader crypto market downturn. INJ is now trading around the $40 level, a crucial psychological support zone that needs to hold to prevent further downside.
AlanSantana, one of the most popular crypto traders on TradingView, has shared his technical analysis on INJ, providing insight into the current price action. He notes:
“The chart speaks, it has things to say. Injective hit a peak 11-November 2023. A higher high hit 24-December, same year, more than 135% higher. There was also a peak in July and if we compare this one to November we have about 95% growth between the former and the latter.”
Santana’s analysis highlights the formation of a potential double top pattern, a bearish signal within an overall bullish trend. He explains:
“When you consider the latest ‘higher high,’ the new ATH hit 14-March 2024, we can see that it is only a little over 15% higher compared to Decembers high and this after months of consolidation. Immediately after the new high is hit we also get a rejection and the action moves back below Decembers peak price.”
This technical pattern, coupled with other indicators, suggests that INJ may be facing strong resistance in the current price range.
Diving deeper into the technicals, the MACD (Moving Average Convergence Divergence) line is currently above the MACD signal line, indicating a bullish trend. However, the Relative Strength Index (RSI) hovers around 40 across all time frames, suggesting that the asset is in a oversold territory and may be due for a bounce.
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Show more +While the technical analysis points to potential short-term downside, it’s important to note that INJ’s fundamentals remain strong. The project has been steadily gaining traction, with its decentralized exchange and interoperability solutions gaining adoption among developers and traders alike.
In conclusion, Injective’s INJ token is facing a significant correction after a remarkable rally. While the technical indicators suggest a potential double top formation and bearish signals, the project’s fundamentals remain solid.
Traders and investors will be closely watching the $40 level as a crucial support zone, and any breach of this level could trigger further selling pressure. However, given the crypto market’s volatility, a swift recovery cannot be ruled out, especially if the broader market sentiment improves.
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