Both INJ/USD and RUNE/USD have broken out in favor of these altcoins over the past week. Can both break out of the downtrend, or can BTC/USD break out and turn these altcoin price movements into a false breakout?
Some of the best-performing altcoins have broken their respective descending trendlines over the past week. Injective Protocol ($INJ) and Thorchain ($RUNE) are among the strongest altcoins of the bunch. Can they move higher, or is Bitcoin about to signal a lower high and pull the altcoins back down with it?
$INJ breaks out of falling wedge
Fonte: TradingView
On the daily timeframe for the $INJ price, it can be seen that a breakout of the descending trendline occurred a week ago. The price broke out of a wedge pattern that it had been observing since early March of this year.
The good news is that the bulls managed to drag the price a little higher than the last local high, which means that the higher high has been reached.
It now appears that the price has been rejected from the horizontal resistance level of $23 and is now heading lower towards what the bulls hope will be a higher low.
The Fibonacci levels align well with the support and resistance lines, and it remains to be seen which level the price will bounce off. Given that the daily Stochastic RSI is rolling over, signaling reduced bullish price momentum; and there has not yet been a retest of the wedge top, the price could drop to the 0.382 Fibonacci and trigger a candle wick to the downside for that retest. Alternatively, it could drop to the 0.618 Fibonacci at $17.20, giving the Stochastic RSI time to bottom out and then cross back up.
$23 resistance level needs to be broken
Fonte: TradingView
Moving on to the weekly chart, it can be seen that the $INJ price is holding support around its current price of $21.35. The rejection came from the first Fibonacci level at $23. If the price can break this level, the next targets would be $28.50 at 0.382 Fibonacci, $37.80 at 0.618, and $44.50 at 0.786.
$RUNE makes a higher high
Fonte: TradingView
$RUNE price is in similar circumstances to $INJ as it broke its descending trendline and almost managed to make a higher high. It looks like the price might be rejected from the resistance at $4.95 and if it is, the Fibonacci support levels are below; first at $4.50 and then at $4.
$RUNE must break horizontal resistance at $4.95
Fonte: TradingView
Zooming in to the weekly timeframe, one can see how important it is for $RUNE to break the current horizontal resistance. The Stochastic RSI is signaling major bullish momentum, but this is likely to peak in the next week or so. Bulls will be hoping that resistance has turned to support by then. Upside targets are the overhead resistance levels at $7.40 and $8.95.
Meanwhile, Bitcoin’s price will also need to move higher. This is the main catalyst for $INJ and $RUNE to see more positive price action.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
