The cryptocurrency market experiences a continued downturn after the November rally. Ethereum has dropped to $2,000, while Injective has fallen by 15% in a day, extending its 90-day drop to 68%.
Current Market Overview
Today, the cryptocurrency market is seeing an intensified downtrend. Ethereum has dropped to $2,000, significantly below its early December level of $4,000. This correction is applying pressure on altcoins like Injective, which have experienced a significant decline.
Analysis of Key Support Levels for Injective
The weekly chart shows that Injective has been trading within a falling wedge pattern since March 2024. The recent downturn has seen its price drop from $35.50 to $9.66. Currently, INJ is testing critical support levels marked in green on the chart. Historically, falling wedges are bullish reversal signals if support holds.
Possible Future Scenarios
INJ's current price action suggests a potential reversal if support holds. A rally towards $20 or higher could occur, depending on the market conditions. However, if the support breaks, further declines could follow. Traders should watch for increased buying volume and a MACD crossover.
The current situation in the crypto market points to a critical juncture for Injective and other altcoins. Holding key support levels may signal a potential reversal.
