Over the past week, Injective [INJ] has had a strong rally, gaining 18% after recovering from the lower end of its trading channel. With a significant increase of 3.02% in the past 24 hours, the uptrend looks set to continue.
Injective Aims for $29 Peak
As of this writing, INJ is in the midst of a strong rally, having broken out of a downtrend channel that began in April. Such a pattern usually precedes a major rally.
The breakout was initiated after INJ bounced off the support level of the descending channel and gained further momentum after trading at the next support level at $18.14.
If the current bullish momentum is sustained, INJ could climb from the current price of $22.14 to the channel top of $29.84, marking a potential upside of 33.07%.
Conversely, if INJ corrects to the downside, it could revisit $18.14 before potentially continuing its upward move.
High purchase volume
Injective (INJ) buying interest has spiked, with both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators signaling bullish momentum.
RSI reached 65.80, indicating strong accumulation from traders, which could push INJ price higher from current levels.
MACD, a key trading indicator, reinforces this outlook by displaying a strong buy signal.
This is evident as the blue MACD line and the orange signal line have entered positive territory, accompanied by multiple rising green momentum bars.
The trend from these indicators continues to suggest a positive move for INJ in the upcoming trading sessions.
The bullish momentum continues
At press time, Injective is enjoying strong momentum, according to Coinglass, as capital continues to pour into the asset. This is highlighted by an increase in the OI-weighted Funding Ratio, which is at 0.0056% at press time.
This increase indicates increased buying activity in the market, especially when it occurs in an uptrend.
The OI-weighted Funding Ratio, which adjusts the Standard Funding Ratio based on the Open Interest of each leverage level, provides a more accurate reflection.
A positive ratio, as observed currently, usually indicates market optimism, reinforcing expectations for INJ to reach the $29.84 target.
