INJ Reverses Downward Trend
![BITmarkets | INJ Reverses Downward Trend](https://wcms-cdn.bitmarkets.com/4464/!!INJ.jpg)
Injective Protocol (INJ) has experienced a significant bullish movement over the past two weeks following a correction that began at the start of this year. This development is promising for investors and traders, but vigilance remains essential.
There are key factors to consider when entering buying positions.
Weekly time frame analysis
INJUSD - 1 Week Time Frame
On the weekly timeframe, the price has reacted positively to the consolidation during the previous bullish impulse. Notably, the potential low of the correction is situated in the upper two quadrants, above the 0.5 Fibonacci level, indicating a resumption of bullish strength.
The nearest obstacle is the lower high of the bearish corrective structure, where buy-side liquidity is also present. For buy positions, this level will serve as the first partial take profit point.
Given the possibility of a continued bullish impulse, similar to what was observed last year, it is advisable to hold a portion of the position even after surpassing the lower high, aiming for the second level of buy-side liquidity.
Daily time frame analysis
INJUSD - 1 Day Time Frame
On the daily timeframe, entry parameters for buying positions become clearer. The initial liquidity spike and the break of the internal structure occurred during an impulsive move, which is highly favorable.
For those looking to capitalize on the potential of this cryptocurrency at the end of its price correction and thus at bargain prices, buy orders can be placed in the blue zone indicated on the chart. This zone represents fair value gaps, providing strong support for the market algorithm.
A protective stop-loss order should be placed below the external low. If the price does not react to these gaps, or if the weekly candle closes above the highest value from two weeks ago and then closes below the blue zone, it will be prudent to sell off most of the position.
This action would be based on a reduced first probability, as an ideal scenario during an impulsive move would see the price leaving fair value gaps, supports, and resistances open.
![Pridružite se](https://bitmarkets.com/build/assets/join-banner-d079fa22.webp)
Pokušajte pozvati svoje prijatelje i zajedno zaraditi
10% od naknada za trgovanje vaših prijatelja i 5% od zarade vaših prijatelja.