Injective (INJ) shows an impressive 4% surge in 24 hours, driven by a Cypher harmonic pattern intriguing traders. With a potential move towards $14.38, could this altcoin kickstart a new bullish wave? Dive into our analysis to uncover key levels to monitor!
Following a slight dip last weekend, the cryptocurrency market is once again displaying a bullish trend at the beginning of this week. Heavyweights like Bitcoin (BTC) and Ethereum (ETH) are making gains, pulling along many altcoins such as Injective (INJ).
Indeed, the altcoin Injective (INJ) has surged over 4% in the past 24 hours, pushing its monthly gains to an impressive 34%. Interestingly, a bearish harmonic pattern known as “Cypher” is forming on the 1H chart, hinting at further upside potential.
This type of technical setup, often used by experienced traders, typically suggests that the price tends to rise once the last leg of the pattern, known as “CD”, is completed.
The Injective (INJ) Cypher harmonic pattern started on May 23, when the price faced resistance around $14.94 (point X) before sharply retreating, dropping over 17% to a low of $12.37 (point C) on May 25.
Since then, Injective has bounced back and is now forming the CD leg of this pattern. If this pattern completes successfully, the INJ price could rise to point D, around $14.38 – corresponding to the 78.6% Fibonacci retracement of leg XC. Compared to the current price of approximately $13.70, this would offer a potential increase of about 5%.
The price zone between $14.38 and $14.39 will be critical going forward. According to harmonic pattern theory, this zone often acts as a reversal point, where selling pressure could re-emerge.
However, if buyers manage to break above this level, it could pave the way for a full recovery to $14.94 (point X) – representing a potential increase of nearly 9% from current levels.
The 1H RSI of INJ has surged, which could reignite short-term momentum. A breakout above the $16.8 resistance could propel the INJ price to the major resistance zone at $21. This marks a potential increase of 48%. The final resistance will be challenging to breach, as it is a historical area of high liquidity.
In the short term, INJ appears to maintain its bullish momentum and is expected to reach $16 in the coming days, if market conditions remain positive.
Conversely, INJ’s failure to surpass $14.39 could indicate a loss of bullish momentum. The price could then experience a consolidation phase or face profit-taking before starting a new upward move.
Investing in Injective (INJ) on Bitget is ideal to take advantage of the current bullish trend. Here are the steps to purchase INJ easily:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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