As the Injective (INJ) token breaks out of the descending channel, will buyers extend the rally and break above $30?
INJ tokens have surged 7.49% in the past 24 hours and are currently trading at $23.17. The Injective Protocol has a market cap of $2.27 billion and is up 12.76% in the past seven days. The recent breakout rally has extended the bull cycle, but will it be enough to push the token past $30?
Whales injecting confidence into the protocol
Injective Protocol tokens have been in the news recently, with Santiment posting a message on Twitter about altcoins experiencing price anomalies following a whale exchange wallet conversion. In the post, Santiment highlighted that altcoins such as Injective, Render, and Polygon have experienced a series of price anomalies. At the same time, the supply from whale exchange wallets suddenly shifted to cold wallets, reflecting increased investor confidence.
Specifically, Injective whales have gradually turned to cold wallets since August last year. In mid-September, the ratio of Injective's top exchanges to non-exchange wallet holdings was 0.01416.
INJ Price Analysis
The descending channel pattern started during the corrective phase in late March and resulted in lower highs and lower lows in a parallel channel. The decline found support at the $14.60 level and resulted in a sideways move that eventually led to a trend reversal.
Injecting Price Chart
Moreover, the ongoing bull cycle completed a bottom reversal with the neckline located at the 23.60% Fibonacci level at $23.42. The price has risen nearly 46% in the past 18 days from the $15.90 bottom on September 8.
The recovery rally is challenging the 23.60% Fibonacci level and the 200-day EMA. Currently, the Injective token is trading at $23.17, up 3.18% intraday from the opening price of $22.46.
The recovery progress has also influenced the rise of the 50-day EMA, which increases the possibility of a golden crossover if the momentum continues. Moreover, the MACD indicator shows a bullish trend in the average line and a rising positive histogram.
Injection Protocol Bullish Target
According to the Fibonacci levels, a break above the rounding bottom of the key Fibonacci resistance level could challenge the 50% Fibonacci level at $33.27.
Meanwhile, in support of the bullish trend, analyst Rekt Capital highlighted the falling wedge pattern that emerged in INJ’s weekly price chart during the correction phase.
However, during the recent bull cycle, the Injective Protocol token has broken out of a falling wedge pattern. According to Rekt Capital, a weekly close above this bullish wedge could lead to the apex of this structure at $28.
Meanwhile, based on the current 100-day and 50-day EMAs, the support levels under the bearish sentiment are $21.05 and $19.89, respectively.
