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Injective (INJ) Approaches Crucial Support Amidst Bullish Signals
Injective (INJ), a rapidly growing player in the DeFi and blockchain sector, is drawing close attention as its price approaches the critical $12.20 support level. Technical analysis indicates that this area could offer a prime buy-the-dip opportunity for traders, with projections for a substantial breakout if bullish momentum returns to the market.
Recent Price Movement and Technical Setup
On July 28, INJ staged an impressive attempt to break free from its ascending triangle formation, briefly reaching $16.35. However, sellers stepped in, pushing the token down nearly 20% to around $12.80 and slipping it below the 20-day exponential moving average (EMA). Despite this correction, INJ remains in a bullish technical setup, as fundamental drivers continue to support the project’s long-term growth.
Injective’s Strong Fundamental Developments
The pullback comes against a backdrop of significant achievements for Injective. The protocol has successfully deployed its EVM testnet internally, paving the way for greater interoperability. Additionally, Injective recently facilitated the tokenization of SharpLink Gaming’s $1 billion Ethereum (ETH) treasury and saw a CBOE filing for a staked Injective ETF by Canary Capital. These developments highlight growing institutional and ecosystem interest in Injective, underpinning its bullish outlook.
Chart Outlook: Will INJ Break Out or Slide Further?
Currently, INJ is targeting the $12.10–$12.20 zone, which has flipped from resistance to support on the 4-hour chart and coincides with the 50-day simple moving average on the daily timeframe. Prolonged selling could trigger a further dip to the ascending triangle’s lower trendline, with additional support near $11.20. Should INJ bounce from these crucial levels, the token’s bullish structure would remain intact, setting the scene for another breakout.
A sustained recovery above the 20-day EMA and a close above the horizontal $15.50–$16.00 resistance range, backed by strong trading volumes, could propel INJ toward the $25 target—representing a potential 100% move from current levels. Conversely, a breakdown below $11.20 would invalidate the bullish scenario and could spark a deeper correction toward the key psychological level of $10.
INJ Price Prediction: Cautious Optimism for Crypto Investors
As Injective continues to develop and attract institutional backing, INJ’s price action remains at a pivotal juncture. Traders and investors should monitor these support and resistance levels closely, as the next move could define INJ’s trajectory in the cryptocurrency market over the coming weeks.
Source: crypto
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