Insights Analysis INJ Could Soar to New Highs

INJ Could Soar to New Highs

May 28, 2024 Analysis
BITmarkets | INJ Could Soar to New Highs

The popular cryptocurrency that is INJ boasts a market capitalization exceeding $2.3 billion, which is a very impressive feat given that the Injective Protocol's token debuted on markets several years ago.

Ascending by a whopping 260% in one year's time, INJ is facing a rather tough 2024, losing more than 28% of its value throughout the year.

When will INJ prosper once more?

Weekly time frame analysis

INJ1

INJUSD - 1 Week Time Frame

The analysis on the chart provided exhibits a strong support zone known as the Fair Value Gap (FVG), which has consistently held for several weeks. It's important to highlight that INJ is trading in the Discount Zone, presenting attractive buying opportunities at relatively low prices.

Despite this, the price has struggled to close above the upper boundary of this zone, suggesting that this gap may be perceived as resistance.

Observing where the price closes on the weekly chart is crucial; a close above the top level would likely indicate a continuation of the bullish trend, while a close below the lower level could suggest a prolonged bearish correction.

4-Hour time frame analysis

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INJUSD - 4 Hour Time Frame

For traders and investors employing the Risk Entry model, the current indecisive situation on the weekly chart does not preclude entering buy positions. The price is positively responding to the support provided by the FVG, aligning with the Order Block (OB) at its 0.5 level.

Key trading areas

Stop-loss orders should be placed just below the higher low, around $23.8. If the price closes below the FVG, it is advisable for traders to consider reducing their positions significantly, as there's a risk the price could drop below the higher low due to Sell-side Liquidity (SSL).

Profit-taking should be targeted at the next higher high, with the option to maintain a portion of the position if the bullish trend continues in the weekly timeframe, potentially reaching the all-time high.

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