Crypto: Injective suffers a 60% drop since its last peak: Analysis of June 13, 2024

While Injective was on the rise throughout 2023, the cryptocurrency faced a bearish movement which pushed it into oblivion. Let's take a look at the future prospects for INJ.

Injective (INJ) course situation

After reaching its all-time high in 2021, Injective has consolidated in a range between $30 and $45. Shortly after, a bullish move marked a new ATH for INJ at $53. Following this movement, the price of Injective fell, bringing it down to $19. Since then, it appears that the cryptocurrency has attracted buying interest that has pushed it above the POC considered since the last decline.

At the time of writing, INJ is trading near $30. Thus, it appears that a bullish reversal is underway. This is all the more plausible as the medium-long term trend of the cryptocurrency remains bullish, although its moving averages are not persuasive. Indeed, we can see that the price of Injective is not above the latter. Furthermore, it is clear that the 50 and 200 day moving averages have formed a “death cross”, a phenomenon seen as a downward trend reversal. Fortunately, we can be reassured with the dynamics of Injective which seems to be picking up again, as demonstrated by the oscillators and its price itself.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Focus on derivatives (INJ/USDT)

Open interest in perpetual contracts linked to Injective has recently returned to strength as the cryptocurrency's price has appreciated. Thus, it seems that the interest of investors and speculators is back, mainly oriented on the buyer side. The low funding rate indicates a healthy market, without excess buying or selling. Concerning liquidations, we observe that they are subtle and mainly on the buyers' side. This once again demonstrates significant buying interest, this phenomenon being initially conducive to a panic movement triggering greater selling pressure.

The three-month INJ/USDT liquidation heatmap reveals that the liquidation zone at $31 was recently reached. This appears to have triggered short interest, leading to a downward movement in the price of the cryptocurrency. Currently, the most significant liquidation zones are on either side of the current price: above, we can note the wide zone between $35 and $45. Below, the most marked area is around $23. Price approaching these levels could result in a massive triggering of orders, increasing the risk of a period of heightened volatility for Injective. These areas therefore represent a crucial point of interest for investors.

Hypotheses for the Injective course (INJ)

• If the price of Injecitve remains above $23, we could anticipate a bullish recovery up to $35, or even $40. The next resistance to consider would then be the ATH of Injective at $53. At this point, that would represent an increase of more than 77%.

• If the price of Injective fails to stay above $23, we could envisage a return to around $20, or even $18. $. The next support to take into account, if the bearish movement continues, would be around $16. At this point, that would represent a drop of around -44%.

Conclusion

Injective is showing signs of recovery that cannot be ignored. With currently positive momentum and renewed investor interest, INJ may well be preparing to overcome the recent downside pressure it has experienced. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and “market squeezes” in each scenario. Finally, let us remember that these analyzes are based solely on technical criteria and that the price of cryptocurrencies can also evolve quickly depending on other more fundamental factors.