The cryptocurrency market is currently experiencing a correction, with many assets, including Injective (INJ), under pressure.
Current Situation in the Cryptocurrency Market
At present, Ethereum (ETH) has sharply retreated from resistance at $3,940 to around $3,440 — an 8% decline this week. This trend has affected other altcoins as well, including INJ, which has dropped 18% during the same period, trimming its monthly gains to 9%.
Formation of a Bullish Pattern for INJ
Despite the recent weakness, INJ’s chart is showing signs of forming a familiar structure known as a fractal. On the daily chart, INJ has been trading within a broad falling wedge, typically associated with long-term accumulation and eventual breakout. Notably, back in late 2024, INJ broke out of a smaller falling wedge and reclaimed its 200-day moving average, followed by a slight correction, after which the token surged 60%.
Forecast and Key Levels for INJ
The key level for INJ is the 200-day moving average, currently near $12.47. If INJ can hold this level and start pushing upward, it could lead to a move towards the upper wedge resistance near $15.75, representing roughly a 25% potential upside. A successful breakout above this wedge could set the stage for an even broader rally.
Overall, the current state of INJ requires careful monitoring of key levels, with the reaction to the 200-day moving average being a decisive factor for the asset's future direction.
