Recent technical analysis of Injective (INJ) reveals cautious recovery potential near key support levels after a steep correction. Current market conditions encourage informed traders to consider accumulation strategies amid shifting market sentiment.
Market Sentiment and Historical Price Action
A recent tweet from crypto analyst Andrew Crypto stated, "L1s will run hard once the market turns around. $INJ is in a good area to start bidding. Personally buying more $INJ in this demand zone." This comment adds to the view that traders now watch demand zones closely. Historical price action shows INJ surging from low levels to above $50 during 2023. After reaching its peak, the asset underwent a notable correction in 2024, forming a descending pattern with lower highs and lows. The current price hovers near a key support zone around $10.16, which acted as an accumulation area earlier in the year.
Technical Analysis and Key Levels
Recent charts on the weekly timeframe illustrate INJ testing critical Bollinger Bands. The price dropped below the middle band at about $20.47 and touched the lower band near $7.42. A small bounce to approximately $10.12 at the time of writing suggests that buyers are stepping in at oversold levels. The stochastic RSI remains extremely low at values of 4.22 and 7.37, indicating oversold conditions. Analysts observe that a sustained move above the $12 to $15 range is essential for confirming recovery.
Outlook and Future Price Projection
Technical projections show a possible bounce from the support zone with a choppy consolidation phase expected before an upward move. The projected price path suggests an eventual trend toward the $30 level or higher. Such levels may be reached if buyers maintain control above key support. Risk factors remain if the $10 support fails to hold. A breakdown could drive the price toward the $7.42 level or lower, intensifying the downtrend. Market conditions, broader crypto sentiment, and Bitcoin’s trend are factors that may influence this scenario. The technical analysis indicates that a sustained recovery requires overcoming both minor and major resistance zones.
The overall analysis of INJ points to careful monitoring of key technical levels for possible recovery.
