Michaël van de Poppe - 08 October 2022
The price action on Injective Protocol looks promising!
Hey everyone, in today’s blog, we’ll dive into the world of altcoins and chart $INJ!
INJ - USDT
The price action on Injective Protocol looks promising as it has tested the resistance area multiple times. The more often a resistance gets tested, the weaker it becomes; therefore, we can determine the next target zone after that, which we can find in the PA in this update.
The chart itself is self-explanatory, as it shows the resistance zone Injective Protocol has to break through. In that way, the area around $2 is a vital one to crack and if it cracks, a big gap opens toward $3.
Why is there a chance of such a significant run? Simple. The price of INJ has been moving sideways since May; therefore, given the current sentiment, the mass has been shorting the asset and everything in crypto. Once it breaks out of the range-high, which we can see at $2, it will likely accelerate as break-out traders step in to buy the asset. Still, also shorts are getting liquidated or stopped out (which are closed by opening longs), and there’s a big gap in price action towards $3, which means that a significant run of close to 50% is around the corner.
On this timeframe, we can’t establish the support levels, for now, so we’ve got to look at lower timeframes.
Lower timeframes show some critical areas to watch, which we can’t find on the daily timeframe, and therefore, support levels and entry zones can be defined. That way, a sweep of the recent low at $1.75 could happen, and then an entry zone between $1.65-1.70 is something to keep an eye on.
The second point of interest is the block we have on the 4-hour resistance area as resistance area, which is the zone at $2.00-2.05, as described earlier. If that flips for support, we’re looking for a continuation towards $3.
Have a nice weekend!
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