Injective (INJ) is currently trading at $3.20 on Thursday, Feb 26, with a decline of 2.06% in the last 24 hours. The trading volume is 1.46% higher and is currently standing at $69.06 million. The token has been down by 1.21% over the past seven days, according to CoinMarketCap.
Source: CoinMarketCap
INJ Tests Crucial Support Zone
Jonathan Carter, a crypto analyst, highlighted that INJ is currently consolidating around the lower boundary of its descending channel on the weekly chart. He stated that this structure is still valid. He also pointed out that the bounce is a clear indication that the buyers are active in this zone.
Carter stated that this is a critical zone in validating the overall trend. He added that the market reaction at this zone will define the next move for INJ. The potential price targets for the upside move in INJ are $4, $7, $10, $16, $25, and $48.
Source: X
Moreover, another analyst, WhalesCrypto, mentioned that the INJ is currently testing a falling wedge formation on its 4-hourly chart. This is a common formation that is usually seen towards the end of a decline. This is an area of interest that is currently being monitored by traders.
The analyst noted that if this formation is confirmed, this could likely change its momentum and help restore its short-term strength. The next technical level of interest is the $10 mark, which aligns with previous reaction zones. The reaction of the price at this level will help determine if its momentum will extend.
Source: X
RSI and MACD Show Neutral Momentum
The RSI on the daily chart is currently sitting at 43.37, and its signal line is sitting at 41.20. This shows that its momentum is moderate. The MACD line is currently sitting at 0.057, and its signal line is sitting at -0.160. The histogram is sitting at -0.216.
Source: TradingView
Also Read: Injective (INJ) Skyrockets Amid $2M Strategic Buy, Next Resistance $5.50
Declining Open Interest and Volume Signal Caution
The CoinGlass data show that open interest is down. It has decreased by 6.74% and is currently at $54.05 million. This shows that derivatives traders are now less involved in this market. It is also a sign that traders are less convinced about the market’s direction in the coming days.
Source: CoinGlass
The volume of both spot and derivatives is also down. CoinGlass data show that this has decreased by 12.19% to $111.04 million. This shows that traders are waiting for a move in this market. It is likely that they are waiting for a decisive move.
Source: CoinGlass
The figures show that funding is still negative. The OI-weighted funding is -0.0091%. This shows that there are more short positions in the market. It is also a sign that the market is leaning towards a bearish trend.
Source: CoinGlass
The price action in INJ is trading at significant technical levels. Analysts are paying attention to the price action in relation to the descending channel and the wedge formation. Further confirmation is needed before any trend is evident.
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