Injective price could rise 10% before shorts have a field day
- Injective price is bullish, with momentum indicators pointing to growing momentum
- INJ could rise 10% to the weekly FVG at $8.273, filling the inefficiency before a potential pullback.
- A break and close above the CE at $8.407 would confirm an uptrend, likely reaching the $8.901 hurdle.
Injective (INJ) price is trading with a bullish bias, outperforming many cryptocurrencies, including Bitcoin (BTC). The rally could continue but it all depends on how bulls play their hand. Meanwhile, experts advise that now could be the ideal time to invest in altcoins with the countdown to the Bitcoin halving continues.
Injective price eyes 10% rise
Injective (INJ) price engaged a bullish gear on September 11, jumping off from the $6.601 support level after this buyer congestion level broke its 20% fall. With momentum indicators displaying a bullish outlook, INJ could rise 10% to the weekly fair value gap (FVG) at $8.273.
A fair value gap acts as a magnet for asset prices. It represents an inefficiency that needs to be filled. As such, it is likely that Injective price will rise to fill the inefficiency, with the lower boundary of the FVG serving as the take profit level for conservative longs.
A break and close above the consequential encroachment (CE) at $8.407 would confirm the uptrend, potentially going as high as the July 20 lows of $8.901. Notably, the CE is the midline of the FVG. Such a move would constitute a 20% climb above current levels.
The Relative Strength Index (RSI) is headed north, suggesting rising momentum, corroborated by the Awesome Oscillator, which is now positive after its histogram bags steadily maintained the green color transitioning from the negative into the positive territory.
INJ/USDT 1-day chart
Conversely, early profit-taking is likely to cut the forecasted 10% climb short, sending the Injective price down below the $7.000 psychological level, marking a break below the previous day’s low. In the dire case, the slump could extend below the $6.601 support floor. A decisive daily candlestick close below this level would be defining, beginning a new downtrend considering it marks the last lower low of the previous uptrend.
On-chain analytics and market intelligence platform IntoTheBlock show that at the current price, 92.14% of addresses holding INJ are sitting on unrealized profit (in the money), while only 2.50% are sitting on unrealized losses (out of the month). Meanwhile, 5.36% are breaking even (at the money).
INJ GIOM
With more addresses in the money, investors are likely to give in to their profit-taking appetite soon. The ensuing selling pressure could send Injective price south, confirming the invalidation thesis.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
