The Injective (INJ) price has been on a tear since the beginning of March and has nearly reached a crucial resistance area at $10.40.
Whether it breaks out from it or gets rejected could very well determine the future trend’s direction. Several key indicators can provide some insight into the possible direction of Injective’s price.
Injective Struggles at Resistance
The INJ price has increased since the beginning of the year. The price broke out from a long-term resistance line in January and validated it as support in March, creating a long lower wick (green icon).
Such wicks are considered bullish signs since they mean that sellers could not push the price down. Rather, buyers stepped in and caused the price to close higher than at the beginning of the week.
The price has increased since and has nearly reached the $10.40 resistance, created by a horizontal resistance area and the 0.382 Fib retracement resistance.
Fibonacci retracement levels indicate that after a move in one direction, the price will retrace toward a previous price level before resuming in the original direction. Whether INJ breaks out or gets rejected could determine the trajectory of the future trend.
The closest support area is at $4.20, while the next resistance is at an average price of $24.
INJ Price Prediction: Struggling to Break Out
The technical analysis from the daily time frame shows that the INJ token price has traded inside an ascending parallel channel since the beginning of the year. In such structures, the pattern’s support and resistance lines are often validated numerous times.
In the case of INJ, the channel’s resistance line (red icon) also coincides with the previously outlined $10.40 resistance area. Therefore, whether the price breaks out from it or gets rejected will be crucial in determining the future trend. While the fact that the price is trading in the upper portion of the channel is bullish, the rejection from the resistance line is a bearish sign.
Additionally, the daily Relative Strength Index indicator (RSI) provides a neutral reading. The RSI is a momentum indicator that determines overbought or oversold conditions. An upward trend and a reading above 50 suggest that bulls still have strength on their side. However, the fact that the indicator is decreasing and just crossed below 70 (red icon) is a bearish sign.
As a result, whether the INJ price breaks out from the channel and the $10.40 resistance area or falls below the channel’s midline will likely determine the future INJ price prediction. In the case of the former, an upward movement toward $24 will be the most likely scenario. In the case of the latter, the price could break down from the channel and fall to $4.
For BeInCrypto’s latest crypto market analysis, click here.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.