Injective (INJ) Holds Key Support After 87.92% Decline, Consolidates Below Critical Trendline Resistance

Injective (INJ) has retested a critical support area following an 87.92% decline from its $53 peak in early 2024, sparking renewed attention among traders. The asset’s current price of $14.22 is consolidating near a historical support zone that previously acted as a base for a significant breakout. The recent drop to a low of $6.34 mirrors a prior price pattern observed in 2021-2023, where a 90% correction was followed by a 4000% rally [1]. This recurring fractal structure has drawn comparisons to the asset’s earlier trajectory, which saw INJ move from $0.65 to $25 before correcting to $1.12 and surging to $53 [1].

Technical indicators highlight a key resistance level at $14.26, with the price currently hovering near this threshold. A breakout above this level could signal the end of consolidation and potentially trigger a move toward $200, a 2,072% gain from the recent low. This projection is based on the replication of the 1-2-3 price structure observed in prior cycles, where similar corrections were followed by sharp recoveries [1]. Traders are monitoring volume and price action within a defined range between $14.26 resistance and $13.12 support, noting that volatility remains contained despite minor intraday fluctuations [1].

The current setup is further complicated by a descending resistance trendline that has constrained upward momentum since the beginning of Q2 2024. Analysts and market observers are closely watching whether INJ can overcome this barrier, as a successful breakout would align with the historical precedent of a 40x rally from a comparable consolidation phase [1]. The recent 7.2% 24-hour gain suggests short-term buying interest, though sustained momentum above $14.26 will be critical to validate the potential continuation of the bullish pattern [1].

Market participants are divided on the implications of this consolidation phase. While some view the repeated fractal structure as a strong indicator of a pending breakout, others caution that the presence of the descending resistance trendline could delay or even negate a significant price increase. The asset’s performance in the coming weeks will likely hinge on its ability to break through the $14.26 level, with a failure to do so potentially extending the consolidation period or triggering a further pullback toward the $13.12 support [1].

Sources:

[1] [Injective Holds Key Support After 87% Decline, Consolidates Below Critical Trendline Resistance] [https://cryptonewsland.com/injective-holds-key-support-after-87-decline-co/]