The Injective’s price appears poised for a significant move after being stuck in a narrow range for over two months. Recent developments suggest a breakout rally could be imminent for INJ in the coming weeks.
The price of Injective has been trading within the range of $31.09 to $43.40 since early 2024, forming lower highs along the way. However, on February 27, INJ managed to break above this declining resistance level, signalling a potential breakout. This positive development could lead to substantial gains for investors.
If INJ successfully flips the $43.40 resistance level into a support level, it could target the 161.8% Fibonacci extension level at $51.01, representing a nearly 19% increase from its current level of $42.75.
Momentum indicators like the Relative Strength Index (RSI) and the Awesome Oscillator support this bullish outlook. The RSI has recently re-entered the overbought zone, indicating strong upward momentum, while the Awesome Oscillator has started producing green histograms above the zero level, further confirming bullish sentiment.
However, investors should remain cautious of potential Bitcoin-driven market sell-offs. If INJ experiences a twelve-hour candlestick close below $34.15, it could invalidate the bullish thesis and signal a shift in momentum. In such a scenario, the price of injectives could decline by 9% and revisit the range low of $31.09.
Overall, while there are promising signs for INJ’s price, investors should be mindful of market conditions and closely monitor critical support and resistance levels to make informed decisions.