Why I Don't Consider Trading Injective Protocol (At The Moment) — Trade Analysis
Based on pure numbers, INJ isn't doing that badly. Especially compared to many other altcoins.
Certainly, it is down ~60% from its March peak. But hey, tons of other tokens dived much deeper.
Moreover, INJ trades at a level far away from its bear market lows. Again, many other coins are close to their lows or even below.
So, it's all good. Let's set up some trades. Uhm, no.
When looking at the chart, you can hear voices "Don't long me" very loudly.
Here's why:
1️⃣ Downtrend Channel: INJ trades in a strong downtrend channel defined by several lower highs and lower lows. This chart pattern definitely represents an environment in which you don't want to go long.
2️⃣ Strong Sell Pressure: Looking at the volume reveals another important aspect: The bears haven't lost steam and keep the selling pressure high. Accordingly, a reversal is unlikely.
3️⃣ EMA 200: The price trades clearly below the long-term moving average. And we all know that trading against the trade isn't the smartest thing.
Even trading the channel trend lines is not an option, in my opinion. As you can see in the charts, INJ has traded most of the time at the lower trendline.
- It touched the lower trendline 5 times (upper trendline only 2 times)
- After touching, it remained at the lower trendline for a longer time (directly bounced at the upper trendline)
- Bounces from the lower trendline did not always lead to reaching the upper trendline.
Overall, INJ simply doesn't offer a solid setup for trades on the higher timeframe, like the 4H or 1D chart.
$INJ #INJTECTIVE