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Injective (INJ) could be preparing for another retest of the $10 resistance as its price attempts to confirm a key support level. Some analysts suggest that the cryptocurrency could be preparing for a breakout and a massive bullish reversal.
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Injective Eyes $10 Retest
Over the past month, Injective has surged around 43% from its 18-month low registered on April 7. During last month’s recovery, the cryptocurrency pumped from the $6.34 low to the $10 barrier, hitting a six-week high of $10.63 before retracing.
INJ has been in a downtrend since hitting its Q4 high of $35.26, retracing nearly 75% in the last six months. Analyst Crypto Rand noted that the token has attempted to break out of the downtrend but has faced strong resistance around the $9.5-$10 range.
Following its recent jump, Injective got rejected from this range, with some market watchers suggesting that it could retest the $9-$9.20 levels as support before the next breakout attempt.
Amid the weekend retrace, INJ’s price has touched these levels, trading between the $9.00-$9.40 and briefly falling to $8.90 before bouncing. After the 4.8% drop, the cryptocurrency is attempting to confirm this level as support, which could help Injective gain strength for another push above the key zone and toward the $11-$12 resistance.
Crypto Rand noted that a breakout of the “$10 range would trigger the bullish reversal,” which could also propel the token toward the $14 barrier, lost in early March. Notably, this level has been a key horizontal level since the November post-election pump, serving as a crucial support and resistance.
INJ Ready For A Breakout?
Meanwhile, analyst Sjuul from AltCryptoGems highlighted a massive, inverse Head and Shoulders pattern on INJ’s chart, noting that investors should pay attention as “this is one of the strongest reversal patterns.” This formation is a bullish reversal chart that suggests a potential shift from a downtrend to an uptrend.
According to the chart, the cryptocurrency has formed this setup over the past two months, with the neckline sitting around the $10.30 resistance level. A breakout from the neckline could trigger a significant surge toward the $14 mark.
Analyst Lennaert affirmed that INJ “feels like an absolute steal” at its current range, as he considers that the cryptocurrency is likely not going lower than the 2023 key support at around $5.5.
The analyst suggested that if momentum flips to altcoins, INJ’s price “will be back at the highs in no time,” adding that it has “one of the strongest fundamentals of all projects out there.”
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Notably, the project announced that “For the first time ever, all of the Magnificent 7 stocks are live on-chain via Injective” to “redefine Wall Street and finance forever.”
According to the May 6 statement, Apple’s APPL, Microsoft’s MSFT, Amazon’s AMZN, Nvidia’s NVDA, Meta’s META, Google’s GOOGL, and Tesla’s TSLA are now “fully tradable 24/7 through Injective’s iAsset framework and the decentralized exchange Helix.
As of this writing, INJ trades at $9.25, a 27.2% increase in the monthly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com