Injective/Tether (INJUSDT) Market Overview: Strong Rally Amid Key Technical Levels

• INJ/USDT surged ~8.4% in 24 hours, closing near $14.40, driven by strong volume near highs.
• A bullish engulfing pattern formed in early morning ET, suggesting short-term optimism.
• RSI reached overbought territory, hinting potential for near-term pullback or consolidation.
• Volatility expanded during key breakout hours, with volume peaking at $14.50.
• Price remains above 20-period MA on 15-min, reinforcing recent bullish momentum.

24-Hour Market Summary

Injective/Tether (INJUSDT) opened at $13.67 on September 17 at 12:00 ET and closed at $14.40 on September 18 at 12:00 ET, reaching a high of $14.58 and a low of $13.56. The total 24-hour volume amounted to approximately 349,568.34 INJ, with a notional turnover of around $4,785,000 USD, reflecting strong participation in key breakout and consolidation periods.

Structure & Formations

The 15-minute chart reveals a strong bullish bias with a clear upward move from $13.56 to $14.58 over 12 hours. Notable patterns include a bullish engulfing candle at the $14.01–$14.09 level and a doji near $14.51, indicating indecision post-breakout. The price appears to have found immediate support around $14.20–14.40 and is currently testing a new resistance cluster at $14.48–14.52.

Moving Averages

On the 15-minute chart, the 20-period MA is bullish, currently sitting near $14.30, and the 50-period MA at $14.26 reinforces the upward bias. On a daily basis, the 50-period MA is at $14.10, 100-period at $13.95, and 200-period at $13.75. Price is comfortably above all, suggesting a continuation of the bullish trend.

MACD & RSI

MACD remains positive with a rising histogram, confirming increasing bullish momentum. RSI has climbed into overbought territory, peaking at 74, suggesting potential near-term profit-taking or consolidation. However, as long as RSI stays above 50 and MACD remains positive, the upward trajectory could continue.

Bollinger Bands

Volatility expanded significantly during the early breakout phase, with price reaching the upper band at $14.58. The bands have since contracted slightly, with price currently near the upper midline, indicating a continuation of the bullish trend. A break above the upper band could signal a new momentum phase.

Volume & Turnover

Volume surged during the critical breakout hours between 19:00 and 20:00 ET on September 17, reaching a peak of 25,031 INJ. Notional turnover matched this increase, with the largest trades occurring at $14.50–14.58. Price and turnover are aligned, suggesting genuine buyer conviction rather than wash trading.

Fibonacci Retracements

Applying a Fibonacci grid to the key swing from $13.56 to $14.58, the 38.2% retrace level is at $14.36 and the 61.8% at $14.18. Current price action is near $14.40, slightly above 38.2%, indicating a potential pullback target at that level. If the 61.8% level is tested, it could offer strong support.

Backtest Hypothesis

The backtest strategy described aims to capture momentum during key breakouts by entering long on a close above the 20-period MA and exiting when RSI exceeds 70 or volume declines by 50%. This approach aligns with today’s price action, where a breakout above the 20-period MA coincided with strong volume and rising RSI. While the strategy performed well in today's environment, it may struggle in choppy or sideways conditions. Incorporating a Fibonacci retrace filter could improve risk-adjusted returns by avoiding premature entries.