Injective Protocol Presents Buying Opportunity | BITmarkets
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Injective Protocol Presents Buying Opportunity

January 28, 2025 Analize
BITmarkets | Injective Protocol Presents Buying Opportunity

At BITmarkets, we are committed to providing content that not only enhances your market knowledge but also equips you with actionable insights, enabling you to trade with confidence and precision.

Building on our analysis from yesterday, we take another critical look at the cryptocurrency market, offering an accurate assessment of its current state and potential recovery signals for Injective Protocol.

4-hour time frame analysis

HowInj

INJUSD - 4 Hour Time Frame

Since the beginning of 2025, Injective’s price has repeatedly tested an implied support zone, defined by historical price activity and its continued adherence to this level. However, our long-term analysis suggests that relying solely on such zones may not yield sustainable results, as price movements tend to seek unexplored liquidity above or below these areas.

Recent price action in Injective supports this perspective. The price breached the implied support zone due to a liquidity withdrawal, allowing order matching to realign. While it remains uncertain whether commercial participants have significantly engaged, this information is not crucial for retail traders.

The key factor to watch is a confirmed bullish signal. For the bullish trend to be considered resumed, the price must close above the resistance zone on a four-hour timeframe.

Unlike conventional retail trading theories, this resistance zone is identified using a distinct methodology. We previously outlined the criteria for establishing this zone in more detail in our prior analysis.

Injective protocol price target

Once bullish momentum is confirmed, effective risk management becomes essential. The ideal Stop-Loss placement is just below the most recent internal low, which may currently be forming. This strategy helps protect against potential pullbacks while allowing traders to capitalize on upward price movements.

For Take-Profit targets, traders should focus on key Buy-Side Liquidity levels, which represent optimal exit points as the market reassesses the asset’s value.

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