Injective/Tether (INJUSDT) Market Overview: Volatile Rally and Consolidation

• Price surged from $12.71 to $13.58 before consolidating near $13.17.
• Volatility expanded early in the session, then contracted into a tighter range.
• Volume spiked during the initial rally but declined as price moved sideways.
• RSI indicated overbought conditions before a pullback, suggesting short-term exhaustion.
• Key support appears near $12.71, with resistance forming at $13.34 and $13.58.

Injective/Tether (INJUSDT) opened at $12.71 at 12:00 ET–1, surged to $13.58, and closed at $13.17 at 12:00 ET. Total volume for the 24-hour period was 966,887.22 INJ, and turnover reached $13,382,721.14 USD. Price action reflected a sharp rally, followed by a pullback and sideways consolidation.

Structure & Formations

The price pattern shows a strong bullish reversal off the morning lows ($12.71) followed by a bearish pullback into the mid-$13.00s. Key support levels include $12.71 (prior low) and $12.65 (minor support). Resistance is forming at $13.34 and $13.58. Notable patterns include a bullish engulfing candle at 00:30 ET and a bearish harami at 03:15 ET, signaling possible exhaustion and consolidation.

Moving Averages

On the 15-minute chart, the 20-period and 50-period moving averages indicate a strong bullish bias, with price above both. On the daily chart, the 50-day MA supports the bullish trend, while the 200-day MA remains neutral. Price has moved from below to above both 50 and 200-day lines, suggesting potential trend strength.

MACD & RSI

The MACD turned negative after the initial rally, reflecting bearish momentum. RSI peaked at overbought levels (75+), followed by a pullback to neutral levels. This suggests a potential short-term correction could continue unless buyers reassert control above $13.25.

Bollinger Bands

Volatility expanded significantly during the morning rally, with price reaching the upper band at $13.58. In the afternoon, volatility contracted, and price moved into the middle of the bands. This indicates a period of consolidation, and a breakout from this range could trigger renewed momentum in either direction.

Volume & Turnover

Volume spiked during the morning rally, particularly at 00:30 ET when the price surged from $12.62 to $13.22. However, volume decreased significantly during the afternoon consolidation. Notional turnover was lower in the latter half of the session, suggesting reduced conviction in the current price range. Divergence between price and volume may indicate potential for a reversal or breakout if volume increases again.

Fibonacci Retracements

Applying Fibonacci levels to the morning swing from $12.62 to $13.22, key levels include 61.8% at $12.97 and 38.2% at $13.09. The pullback has stalled near the 61.8% retracement level, which may serve as short-term support or resistance depending on the next directional move. On the daily chart, a retest of the 50% Fibonacci level at $13.14 could be significant.

Backtest Hypothesis

A backtesting strategy could be built around breakout and retest of the 15-minute Fibonacci levels and moving average crossovers. Specifically, a long entry on a close above $13.25 with stop-loss below the 61.8% retracement at $12.97 may offer favorable risk-reward. Given the volume profile and MACD divergence, a short-term reversal setup appears plausible as the price consolidates near this key level.