Injective (INJ) Price Shoots up 15% After 5 Million Tokens Burned
The Injective (INJ) price has broken out from a short-term resistance line after news of a five million token burn.
The Injective team announced that five million INJ will be burned forever today. This is the largest ever INJ burn in history. The burn is expected to occur at 14:00 CET. The INJ price has responded positively to the news and is moving upwards.
The INJ price is attempting to reclaim an ascending support line from which it broke down on Nov. 19. Doing so would also make the RSI increase above 50 (green icon), another bullish sign.
In that case, the closest resistance area would be at $2, created by the 0.382 Fib retracement resistance and a horizontal resistance area. On the other hand, a rejection from the line would confirm it as resistance. It would likely take the INJ price to a new yearly low.
Short-Term Breakout Supports Reclaim
The short-term two-hour chart supports the continuation of the upward movement towards at least $2. The INJ price broke out from a descending resistance line on Nov. 30 and is now in the process of validating it as support.
If INJ manages to move above the $2 resistance area, the next important resistance would be at $2.40, created by the 0.618 Fib retracement resistance level and a horizontal resistance area.
Is Long-Term Injective Price Trend Bullish or Bearish?
Despite the relative bullishness from short-term time frames, the increase since June still looks bearish. The main reason for this is that the entire increase resembles an A-B-C corrective structure. Moreover, the ensuing sharp drop (highlighted) looks like an impulse.
As a result, the most likely movement is a corrective increase towards $2.40 before a breakdown to new lows. The movement could be a shorter-term version of the preceding increase.
A price increase above the $2.40 resistance area would go a long way in invalidating this bearish Injective price prediction.
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