Is Injective (INJ) Preparing for a Breakout After Respecting Key Levels? Analyst Weighs In

INJ's price jumped up 12%, catching traders' attention. This Layer 1 blockchain focuses on DeFi, AI, and big data.

Cryptocurrency prices have been displaying remarkable strength in 2024, with several assets notching up gains of over 100%. This surge has left many traders and investors searching for the next potential breakout candidates. One token that has been quietly putting in a solid performance is Injective (INJ).

INJ price climbed up 12% on March 10, grabbing the attention of traders. This Layer 1 blockchain, which emphasizes DeFi, AI, and big data, is up over 200% year-to-date. As INJ price respects key levels, one analyst is sharing their thoughts on what might be next for the token.

Injective Price Action: Trend Line Acts as Support

A glance at the daily price chart of INJ reveals a clear reliance on a diagonal trend line acting as support. This trend line has been tested multiple times and has held strong, indicating strong buyer interest at these levels. The latest bounce off the trend line resulted in a 12% surge, highlighting the market's respect for this support zone.

Examining the price action further, the asset peaked in October 2023 before consolidating. Interestingly, the highs are getting lower, while the lows are climbing higher, forming a triangle shape right at the trend line. If INJ continues to hold above this trend line, we may see prices climb even higher.

Crucial Support, Resistance Levels

The $18–$20 range has become a critical support zone for Injective, bolstered by the diagonal trend line. Buyers have consistently stepped in to defend this area, as seen by the sharp price rebound.

On the upside, the $24–$26 range presents a resistance zone, where previous attempts to break higher have resulted in pullbacks. This dynamic creates a clear range for traders to watch in the coming days.

A custom indicator on the chart highlights potential reversal points with color-coded signals. A green signal near the recent trend line bounce aligns with the bullish price movement. This suggests a potential continuation of the uptrend, assuming the support zone remains intact.

While highlighting Injective's technical strength, Seth's tweet also mentions its strong fundamentals, particularly its focus on AI and big data. Encouraging investors to study the project further, the tweet underscores the importance of independent research before making investment decisions.