Injective [INJ] is showing signs of strength despite recent market fluctuations. Over the last month, INJ has seen minimal gains of just 0.39%, according to CoinMarketCap.
However, data reveals a decline of nearly 4% last seven days, after an additional 2.7% drop at the time of writing.
Despite this, Injective's price action looks promising on the weekly charts, as it consolidates above its previous all-time high from 2021.
If INJ manages to expand toward the $35 mark while maintaining its position above this crucial support, it could confirm a bullish trend in the short term, giving investors confidence.
INJ has the potential to reach higher price targets, especially if it holds strong above the key $21.60 level.
Enthusiasts remain optimistic about INJ, believing it could outperform the market in the coming year.
While 2024 hasn't been the best for INJ so far, many predict a long-term rally, with some projecting a target of $100 or higher.
The price contraction seen in the 4-hour timeframe is inching toward a decision zone.
A strong bounce from this resistance level could trigger a 20-30% move in the short term, setting the stage for a parabolic rise by 2025.
When comparing Injective's valuation against Bitcoin (INJ/BTC), the coin has experienced a decline but is now forming a potential recovery pattern.
A double bottom formation has broken to the upside, and the price is now in a retest phase.
If INJ/BTC can regain control and maintain momentum, it could signal a bullish rally.
However, if it breaks below the 2021 high and invalidates the double bottom pattern, a decline could occur before any potential bounce.
Injective's short-term bubble risk indicator is also worth noting.
This metric evaluates market sentiment, and currently, the reading is at 1.05, indicating that the market sentiment remains stable.
This builds confidence for traders considering long positions, as the current price action suggests potential gains.
Lastly, the percentage of drawdown from INJ's all-time high is around 56%, providing an opportunity for long-term holders to anticipate a recovery.
However, given the unpredictable nature of the market, these gains are not guaranteed.
Read Injective's [INJ] Price Prediction 2024-2025
As Bitcoin approaches the $70,000 mark, it could trigger a broader bullish trend across the crypto market, including INJ.
For now, it seems likely that Injective will hold above its 2021 high and continue to rally, though traders should remain cautious and watch key levels closely for optimal entry and exit points.