- Injective price has dropped by 47% since mid-March.
- The trading volume has surged by 800% this month.
In the first quarter of 2024, INJ broke out from the major resistance level of $44. However, the Injective price failed to sustain and slipped back below the $44 mark. This phenomenon turned out to be a fake breakout and witnessed strong selling pressure.
On the daily time frame, the digital asset price was supposed to form a descending triangle pattern but seems to be failing. Recently, the price has triggered a breakout from the 200-day EMA but didn’t get enough buying orders and turned into a fake breakout.
Based on the technical indicators, the Injective price is below the key moving averages. The RSI is at 51 and intersected the RSI-based moving average negatively. Overall, the technical indicators are in favor of a bearish forecast.
Will INJ Price Melt to the $20 Mark After Fake Breakout?
On a daily time frame, INJ shows a fake breakout. Historically, the fake breakout has witnessed strong selling pressure.
Suppose INJ sustains below the 200-day EMA, most of the buyers might get trapped over the key moving averages. The buyers might face stop-loss which may result in strong selling pressure and the price may melt to the $20 level in a week.
On the other hand, if the price bounces back and surpasses the key moving averages, it may turn into a liquidity grab. The digital asset price over the $33 mark may invite buyers which may lead to strong buying pressure.
At press time, the Injective price traded at $27.54 with an intraday loss of 4.54%. The market capitalization is $2.58 Billion and the 24-hour trading volume is $209.44 Million. The circulating supply is 93,400,000 INJ and the total supply is 100,000,000 INJ.
Volume Up by 800% This Month
The data shows that the trading volume has increased by more than 800% from the start of June. However, it has affected the price positively but not much. Moreover, the volume has increased slowly and continuously which is a good sign for a bullish momentum.
Performance
The INJ price has gained 371% in a year but has lost around 22% YTD. The price has risen by 30% in a month but has dropped by 37% in the past 3 months. Overall, the price has remained positive on the wider time span.
Conclusion
Based on the technical analysis and market indicators, the current outlook for Injective (INJ) suggests a bearish trend. The recent fake breakout from the 200-day EMA and the failure to sustain above key resistance levels indicate a potential downward movement for the price. The trading volume has surged significantly, which could potentially support a bullish momentum in the long run.
Technical Levels
The Injective crypto price is expected to face resistance from the $33.00 and $44.00 levels. The price may take support on the $20.00 and $15.00 mark.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.