Injective Protocol ($INJ) and Thorchain ($RUNE) have shown significant bullish momentum over the past week, breaking out of their respective downtrends. The question now is whether they can sustain these gains or if a potential downturn in Bitcoin could reverse their progress and lead to false breakouts.
Several altcoins have seen strong performances recently, with $INJ and $RUNE leading the charge. However, with Bitcoinâs price action remaining a critical factor, will these altcoins continue to climb, or will Bitcoin's movements pull them back down?
$INJ Breaks Out of Falling Wedge
On the daily chart for $INJ, the token broke out of a descending wedge pattern it had been in since March. This breakout pushed the price higher than the previous local high, marking a new higher high. However, the price has encountered resistance at the $23 level, causing a pullback. Bulls are hoping for a higher low to form as the price heads toward Fibonacci support levels.
The daily Stochastic RSI is showing a decrease in bullish momentum, suggesting the price may continue to correct. The first major support lies at the 0.382 Fibonacci level, where a retest of the wedge top could occur. If the price drops further, the 0.618 Fibonacci level at $17.20 could provide support, potentially allowing the Stochastic RSI to reset before another upward push.
Key Resistance at $23 for $INJ
On the weekly chart, $INJ is currently holding support around $21.35, with rejection coming from the $23 resistance level. If bulls can push the price past this point, the next targets lie at $28.50 (0.382 Fibonacci), $37.80 (0.618 Fibonacci), and $44.50 (0.786 Fibonacci). A break above $23 is crucial for continued upward momentum.
$RUNE Seeks to Break Horizontal Resistance
Thorchain ($RUNE) has also seen a breakout from its descending trendline, almost reaching a new higher high. However, the price is facing resistance at $4.95. Should the price fail to break this level, Fibonacci support lies at $4.50 and $4.
On the weekly timeframe, $RUNE must overcome the $4.95 resistance level for bulls to gain control. The Stochastic RSI is indicating strong bullish momentum, but this is expected to peak soon. Bulls are hoping that this momentum will be enough to turn the current resistance into support. If successful, the next upside targets are at $7.40 and $8.95.
Bitcoinâs Role in Altcoin Movements
For both $INJ and $RUNE to continue their bullish trajectories, Bitcoinâs price action will play a significant role. Any signs of Bitcoin breaking out to the upside would likely fuel further gains in these altcoins. However, if Bitcoin fails to maintain its recent strength, it could trigger a pullback for $INJ and $RUNE.
Disclaimer: This content is for informational purposes only and should not be considered financial, legal, or investment advice. Always do your own research before making investment decisions.
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