Injective Protocol’s native token, INJ, has seen a strong price run in recent weeks. According to crypto chart analyst ChartMonkeyBTC, the token now looks poised to retest its recently broken strong resistance around the $20 level. A hold of this support could propel prices dramatically higher.
Breaking Out with Momentum
ChartMonkeyBTC notes Injective broke out above its previous all-time high (ATH) at $20 while maintaining an ascending price channel. With INJ reaching over $36 at the time of analysis, the token had gained over 80% from its ATH breakout.
Such a powerful move suggests INJ carried strong momentum. However, the analyst believes a pullback is now due with the ATH level representing a magnet for a retest.
So far, Injective has held its ascending channel as support during the entire parabolic run. ChartMonkeyBTC estimates a move back down to tag the former ATH would also align with testing the lower channel trendline.
Retest Critical for Continued Liftoff
With INJ up almost 5x its bear market low already, a retest provides a crucial check of underlying demand. If the $16 to $24 zone based on the confluence of the ATH and channel holds firm, it would strongly signal buyers remain in control.
In that case, ChartMonkeyBTC sees limited additional overhead resistance given the vertical nature of the recent advance. The upper channel trendline aligns with INJ reaching up to $362, over 10x its current price.
Quote: “If the support hold, the analyst is looking at the price going as far as $362”
However, failure to hold support could entail a deeper pullback. Without clearly defined levels, prices could decline to the $4 mark where ChartMonkeyBTC identifies the next major layer of buying interest.
As with most small-cap altcoins, volatility remains exceptionally high. The analyst cautions traders to exercise prudence despite INJ’s exciting price action. But staying cognizant of key technical levels allows one to deploy capital at the most advantageous moments.
For now, Injective appears strong as it consolidates following its vertical move. INJ restoring support upon a revisit of $20 would signal to ChartMonkeyBTC this new price discovery mode still has plenty of room to run before exhaustion sets in. The chartist will closely watch how INJ handles its imminent retest.
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