Many altcoins are producing gains for their holders this week. Injective’s INJ is one of them.
The INJ price pumped from $20 levels to the current $26. This represents around a 25% pump in the last few days.
However, Injective is still around 50% away from its ATH set in mid-March.
I took a look at the INJ/USD chart. A descending channel since that period (March 13th) is the first thing you’ll notice here. I marked it with blue lines on the chart.
With this week’s pump, the Injective price broke out of this channel and is now in a ‘discovery’ mode. This means the price is exploring new territory without established resistance levels, potentially leading to increased volatility and price discovery.
The current 200-day moving average is $31, and this is the next resistance level for Injective’s price. We can’t really talk about any uptrend until this level is breached; purely because when a coin is in a broader uptrend, it must trade above its 200-day MA.
What you'll learn 👉
Injective’s Potential for New ATH
Many altcoins, even the ones that pumped in this bull run, will never hit their all-time highs again. I don’t anticipate this being the case with INJ.
First of all, we’re talking about a great project – Injective’s goal is to provide a fast, interoperable blockchain infrastructure for building advanced DeFi applications, including decentralized exchanges, derivatives platforms, and other financial products.
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Show more +It also utilizes a Proof-of-Stake (PoS) consensus mechanism based on Tendermint. This allows for high transaction speeds, security, and interoperability with other networks.
Moreover, the chart looks ‘healthy’ to me. Once the 200-day MA resistance is flipped into support, the path is clear to a new ATH in the second part of 2024.
WIZZ analyst believes the INJ price is on “its way to $30,” which is in line with the 200-day MA. We’re talking about a very popular crypto trader here as he has over 710k followers on Twitter.
Read also: Avalanche (AVAX) and ONDO Crypto Token Prices Soar – Here’s Why
Conclusion
As Injective continues to show strength in the market, breaking out of its descending channel and approaching key resistance levels, the possibility of reaching new heights becomes more tangible.
Even though the journey to $50 may not be linear, the Injective’s solid fundamentals and technical indicators suggest that INJ has the potential to revisit and potentially surpass its previous ATH.
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