Recent Performance and Gains

In the midst of a volatile crypto market, where Bitcoin (BTC) recently surpassed $64,000 and many altcoins have seen fluctuating performance, Injective has shown notable resilience and growth. Over the past seven days, INJ has surged to $21.77, marking an 18% increase. This comes after a challenging period where the altcoin faced downward pressure following the market crash on October 5, which saw its price dip to $13.50.

Despite these recent gains, Injective remains significantly below its yearly high of $52.60. However, the recent upward momentum has led analysts to speculate that the altcoin might be gearing up for a significant rally towards a new ATH.

Analyst Insights: The Path to a New ATH

Crypto Faibik, a well-regarded crypto analyst, has been vocal about Injective’s potential. According to Faibik, INJ is on the verge of breaking out of a falling wedge pattern—a technical formation that often signals a bullish reversal. In a recent update on X, Faibik suggested that a successful breakout from this pattern could propel Injective towards the $100 mark by the fourth quarter of 2024.

“INJ is finally on the verge of a Falling Wedge Breakout. Once the Falling Wedge successfully breaks out, it could hit the $100 mark in Q4,” Faibik stated.

This prediction is based on the current technical setup and recent price movements, which suggest that Injective is positioned for a potential breakout. But what do the price charts and other metrics reveal about the feasibility of this prediction?

Technical Analysis: What the Charts Indicate

Relative Vigor Index (RVGI)

The Relative Vigor Index (RVGI) is a momentum oscillator that indicates the strength of recent price movements. Currently, the RVGI for INJ is positive at 0.219, showing that closing prices are higher than opening prices. This positive reading suggests a bullish market momentum and supports the possibility of further gains.

Directional Movement Index (DMI)

The Directional Movement Index (DMI) also reinforces the bullish outlook. At present, the positive DMI index stands at 25.4, while the negative index is at 22.8. The fact that the positive index is above the negative index indicates a strong upward movement and suggests that the recent gains could continue.

Long Position Liquidation

AMBCrypto’s analysis of Coinglass reveals a notable decrease in long position liquidation over the past two weeks. Since the market crash on August 5, long position liquidation has dropped from $780,000 to $72,000. This decline indicates that investors are increasingly confident in INJ’s future prospects and are willing to maintain their positions despite market fluctuations.

Market Sentiment and Future Prospects

Open Interest and Funding Rates

The current Open Interest (OI)-weighted funding rate for INJ is positive, reflecting increased demand for long positions. This positive sentiment in the market suggests that investors are bullish on Injective and are willing to pay a premium to hold their positions.

Given the current market conditions, Injective’s ability to break out from its descending channel could pave the way for further price increases. If the cryptocurrency continues to build on its recent gains and overcome key resistance levels, it could challenge the next significant resistance level around $25.80 in the short term.

Key Resistance and Support Levels

Resistance Levels

To approach a new ATH, Injective must first overcome key resistance levels. The $25.80 resistance is a critical hurdle that INJ needs to breach to continue its upward trajectory. A successful breakout above this level could set the stage for further gains and potentially pave the way towards the $100 target.

Support Levels

On the downside, support levels are essential for maintaining the recent upward momentum. The primary support level to watch is around $13.50, which marks the low point after the October 5 market crash. If INJ were to retrace, this level could provide a cushion and support any potential pullbacks.

Conclusion

Injective’s recent 18% surge has captured significant attention, and the potential for a new all-time high of $100 is being actively discussed by analysts. With the falling wedge pattern suggesting a possible bullish breakout, combined with positive momentum indicators and decreasing long position liquidation, the outlook for INJ appears optimistic.