ambcrypto.com
On Tuesday, 09 June, Injective [$INJ] announced that the Vulcan mainnet upgrade went live. It is aimed at “optimizing the chain for perpetuals, stablecoins & tokenization,” the official handle’s post on X read, making it one of Injective’s biggest upgrades yet.
$INJ’s price action on Tuesday was bearish. The altcoin shed 2.01% of its value by day’s end, with the crypto down another 7.14% since. In the hours before press time, a price bounce was underway though.
The sell-off after the announcement was a common “sell the news” type of reaction that comes after major upgrades. Despite the short-term volatility in recent days, however, there may be some hope for the bulls.
Combining the higher timeframe Injective structures
At the time of writing, the weekly structure was firmly bearish. The downtrend in recent years managed to set a new lower low at $2.727. Though $INJ has bounced by 90.54% in the 10 weeks since then, the higher timeframe trend and swing structure remain bearish.
The rally over the past two months indicated that a move towards the key Fibonacci retracement levels at $9.63, $11.27, and $13.59 may be possible.
On the 1-day chart, the internal structure shifted bullishly in April (orange), and the swing structure (green) was breached later in May.
The trading volume was above average during the rally to these new highs beyond $5.9. At the time of writing, $INJ seemed to be retracing the rally made in the last two months – A healthy scenario for the bulls.
Traders’ call to action – Cautiously optimistic
The weekly chart revealed how, despite the higher timeframe downtrend, a rally beyond $10 might be possible. The bullish flip of the 1-day structure meant that traders can look to buy the retracement.
The $3.72, $4.50, and $5.04 are key support levels swing traders and investors can keep an eye on. Ideally, for the bulls, a drop into the golden pocket between $3.72-$4.50 would be followed by a bullish impulse move beyond $7.34.
Bitcoin [BTC] and the wider market’s bearish outlook might explain why $INJ investors must remain cautious.
Final Summary
- Injective token’s price dropped on Tuesday following the announcement of the Vulcan mainnet upgrade.
- Long-term trend might be bearish, but the relief rally of the past two months could continue once its own retracement phase ends.