Since October 2023, the altcoin Injective (INJ) price has been trending upwards and has been trading within a tight range for approximately two months. The recent increase in buying pressure has brought INJ close to triggering a breakout rally. This situation could enable crypto investors to make a handsome profit from their INJ investments. At this point, which levels should be monitored for potential benefits? Let’s delve into the details.
Altcoin Injective (INJ) Price Approaches Uptrend
The price of altcoin Injective (INJ) has been moving within the range of $31.09 to $43.40 during the ongoing two-month consolidation. Within this narrow range, INJ has been creating higher peaks at lower levels. However, the midpoint of the range, $37.25, has already turned into a support level, which is a positive development for the bulls.
Looking ahead, for the Injective (INJ) price to initiate a retest of the $43.40 high range and start a breakout movement, it needs to stay above $37.25 and break the descending trend line. This move could mean a gain of nearly 15% for investors.
What Do the Metrics Indicate?
The Relative Strength Index (RSI) has risen above the average level of 50, adding more confidence to the bullish outlook. The Awesome Oscillator has also started producing green histograms above the zero level, indicating the dominance of bullish momentum.
Santiment’s Active Addresses and Network Growth indicators, after moving sideways between February 3 and 12, showed a slight increase, signaling an influx of new and relevant investors at the current price levels.
Additionally, the on-chain volume recorded a 300% increase from 65 million to 260 million between February 4 and 20. This indicates a bullish sentiment for the Injective network as a whole and increases the likelihood of a breakout rally for the Injective price.
Although optimism for the altcoin Injective price is logical, investors need to examine on-chain metrics that could indicate a potential sell-off in the background. The possibility of a sell-off following a 15% rally should not be overlooked. Therefore, investors should remain cautious against a potential reversal in the Bitcoin price.
In such a case, if INJ closes below $34.15 in a twelve-hour candlestick, it will create a lower low and invalidate the bullish thesis. Under these pessimistic conditions, the altcoin Injective price could drop by 9% and revisit the lower range at $31.09.
