dailyhodl.com
A crypto strategist who nailed the pre-halving correction for Bitcoin (BTC) thinks that a layer-1 project is close to sparking breakout rallies.
Pseudonymous analyst Rekt Capital tells his 499,300 followers on the social media platform X that Injective (INJ) appears to be forming a large falling wedge structure on the weekly chart.
The falling wedge pattern is typically viewed as a bullish reversal signal as it indicates that sellers are losing momentum while buyers are stepping in to slow down the price decline.
Says Rekt,
“Injective has been developing this channel for months.
A weekly close above the light blue diagonal resistance could be enough to kickstart a new uptrend.
INJ will coil as close to the apex of this structure as possible in preparation for a breakout.”
At time of writing, INJ is trading at $18.63, down over 5% in the past day.
Turning to top memecoin Dogecoin, the analyst thinks DOGE is still in the process of flipping a long-term diagonal resistance into support.
“Ever since breaking its macro downtrend (blue), DOGE has been experiencing a post-breakout retest of that downtrend.
A successful retest would confirm a new macro uptrend.”
At time of writing, DOGE is worth $0.101, down over 4% on the day.
As for the broader altcoin market, Rekt believes that alts are close to starting a new uptrend.
“The amount of bullish divergences developing across many altcoins gives reason to believe that the altcoin market may be on the cusp of something special
Special things take time, however.”
A bullish divergence is a reversal signal suggesting that an asset is gaining momentum even if it trades lower or sideways.
Generated Image: Midjourney