Injective Protocol (INJ) has been exhibiting promising signs of recovery after enduring a prolonged period of decline spanning over two months. As highlighted by Jelle, a top analyst, with daily bullish divergence evident and an inclination towards reclaiming previous all-time highs (ATHs), analysts are eyeing pivotal levels to gauge the trajectory of this potential resurgence.
One of the notable resistance barriers lies at the $48.50 mark, showcasing resilient seller presence as it has thwarted numerous attempts to breach. This steadfast resistance underscores the challenge ahead for INJ bulls. In the intermediate range, a zone between $35.50 and $39.50 has proven formidable, serving as a point of rejection and contributing to the downward trend.
Conversely, support levels have emerged to provide some stability amidst the volatility. Primary support around $15.50 has historically served as a robust foundation during downturns, facilitating subsequent upward movements. Additionally, an intermediate support zone near $24.00 has demonstrated efficacy in buoying prices, evident in recent bounce-backs from this level.
Examining the Relative Strength Index (RSI) sheds light on the changing market sentiment. Initially dropping below the oversold threshold of 40, the RSI has now displayed signs of improvement, signaling a shift towards buying pressure. This uptick coincides with the observed price recovery from the intermediate support level, strengthening the argument for a short-term bullish perspective.
Despite the bearish trend evidenced by a succession of lower highs and lower lows in recent months, the recent price rebound and RSI recovery inject optimism into the market sentiment. Breaking past the $27.50 resistance, marked as the Previous ATH, could signify a potential trend reversal, potentially propelling INJ towards the $31.50 resistance zone.
According to the latest data from CoinMarketCap, at the current moment, Injective Protocol is being traded at $24.46, indicating a rise of 1.97% within the past 24 hours. The 1-day Relative Strength Index (RSI) stands at 47.31, suggesting that the asset is nearing oversold territory.
Analysis of the 1-Day Exponential Moving Averages (EMA) suggests a bearish short-term trend, juxtaposed against a relatively stable longer-term trend. Moreover, the 1-day Moving Average Convergence Divergence (MACD) trading above the signal line hints at a potential short-term trend reversal.
