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- INJ price seems to be facing rejection near $6.000, and can return.
- Injective price falls by 5.73% in the intraday session.
- INJ was bullish for the past week, rising by more than 15%.
Injective token has been bullish for the past month marking a rally of more than 15%, but the present action hints at a decline. The market bulls may be tired and can send INJ price into consolidation. INJ token is highly deflationary, about 60% of the fees from dApps built over Injective blockchain are auctioned off on a weekly basis via buyback and burn mechanism. This allows the supply of INJ to drastically decrease over time.
The Pictorial
INJ price has formed a robust uptrend after taking support at $4.005. The rising price faced rejection near the primary resistance and moved sideways. The current price can soon form a bullish flag and continue the bullish momentum. The volume turns from buyer-inclined to seller-dominant when prices face resistance. The Bollinger Bands diverge indicating the volatile market, making sharp rises. The current price action occurs above the EMA ribbon, hinting at a bullish trend. The rising OBV suggests the market to remain favorable for INJ.
The INJ price movement forms bullish swings. The Super Trends show a strong bullish trend to prevail in the market. The trendline goes horizontal with the recent sideways movement but can rise again, same as before. The MACD diverges followed by a narrowed split and descending buyer bars. The split can widen, if the trend continues and rises to higher levels. The RSI after reaching the overbought zone, moves back to the 60-range and indicates the decline in trend. The price can drop to 50-range before retracing.
The Peephole
INJ price in the smaller time frame forms a staggering rise suggesting active seller engagement. The Super trends show a step-like rise in the bullish trend and suggest the price may consolidate and rise, in regular intervals. The MACD forms a negative cross and records ascending seller bars, but the narrow divergence can soon turn positive. The RSI drops to 50-range, suggesting the end of the buyer-dominant market. The RSI can rise back from this point and turn bullish again.
Conclusion
Injective network has been bullish for the past week, and the present price action suggests tired bulls. After a short break, the bull may continue the rally, till then INJ price can consolidate. The INJ tokens are deflationary, and work on buyback and burn mechanism. This may reduce its supply drastically. The non-bullish price, if drops, can find support near $4.005.
Technical levels
Support levels: $4.005 and $3.025
Resistance levels: $6.000 and $6.685
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.