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As the Injective (INJ) token gives a bullish breakout of a falling channel, will buyers prolong the rally to cross $30?
In the past 24 hours, the INJ token has surged 7.49%, currently trading at $23.17. With a market capitalization of $2.27 billion, the Injective protocol has witnessed a 12.76% increase over the past seven days. The recent breakout rally has extended the bull cycle, but will it be enough to propel the token beyond $30?
Boost in Confidence Among Injective Protocol Whales
Recently, the Injective protocol token made news with Santiment tweeting about altcoins that had seen a price anomaly after a transition in whale exchange wallets. In the post, Santiment highlighted that altcoins such as Injective, Render, and Polygon witnessed a series of price anomalies. This comes with the whale exchange wallet supply suddenly shifting to cold wallets, reflecting a boost in investors’ confidence.
Specifically, Injective whales have been gradually shifting to cold wallets since August last year. The ratio for top exchange-to-non-exchange wallet holdings for Injective stood at 0.01416 in mid-September.
INJ Price Analysis
The falling channel pattern started with the correction phase in late March, leading to lower highs and lower lows in a parallel channel. The downfall took support at the $14.60 support level and led to a sideways shift, eventually leading to a trend reversal.
Furthermore, the ongoing bull cycle completes the rounding bottom reversal with a neckline at 23.60% Fibonacci level at $23.42. It accounts for a price jump of almost 46% over the past 18 days, from the bottom of $15.90 on September 8.
The recovery rally is challenging the 23.60% Fibonacci level and the 200-day EMA. Currently, the Injective token is trading at $23.17, with an intraday gain of 3.18% from the opening price of $22.46.
The recovery run is also influencing an uptick in the 50-day EMA, increasing the likelihood of a golden crossover if the momentum sustains. Furthermore, the MACD indicator shows a bullish trend in the average lines, with a constant rise in positive histograms.
Injective Protocol Bull Run Targets
Based on the Fibonacci levels, a rounding bottom breakout, surpassing the crucial Fibonacci resistance, is likely to challenge the 50% Fibonacci level at $33.27.
Meanwhile, supporting the bullish trend, analyst Rekt Capital highlighted a falling wedge pattern in the INJ weekly price chart during the correction phase.
However, in the recent bull cycle, the Injective protocol token has given a bullish breakout of the falling wedge pattern. According to Rekt Capital, a weekly close above this bullish wedge could reach the apex of this structure, which stood at $28.
Meanwhile, based on the current 100- and 50-day EMAs, the support levels in case of a bearish sentiment are $21.05 and $19.89.