Key Levels to Watch for Potential Upside as Injective (INJ) Prepares for a Price Bounce

Injective's price action is turning heads, with a potential bullish setup forming in its chart. Top analyst Sjuul has added to the excitement on X (formerly Twitter), describing the setup as a “power of 3” structure and inviting traders to share the optimism.

Injective (INJ) is showcasing a potential bullish setup on its price chart, as highlighted by top analyst Sjuul on X (formerly Twitter). The setup, described as a “power of 3” structure, has sparked optimism among traders. Let’s delve into the technical elements of the INJ chart and explore what they might reveal about its upcoming price action.

A glance at the INJ chart reveals a prolonged consolidation phase after a period of sharp price increase and decline. Currently, the price is trading near a crucial support zone, depicted by a red area on the chart. This zone has witnessed the formation of a potential W-shaped double-bottom pattern, which is widely recognized as a bullish reversal signal.

Above this support level lies a yellow box, which represents a range-bound trading area where the price previously oscillated. This region may act as resistance if INJ’s price begins to recover. Beyond that, a green box at higher levels serves as the projected target zone for a potential rally.

The chart suggests that the current structure aligns with a “power of 3” setup, as mentioned in Sjuul’s tweet. This setup likely involves three stages: accumulation, manipulation, and expansion. If the support holds, the price could transition into the expansion phase, which might lead to upward momentum.

The W-shaped pattern near the support zone further strengthens the possibility of a reversal. An upward trajectory from the current levels could target the resistance zones and eventually the green target area.

Sjuul’s tweet encapsulates the optimistic sentiment among traders, describing the current setup as a dream scenario. While speculative in tone, the tweet aligns with the chart’s technical indicators, suggesting a potential for bullish movement. By framing this setup as an opportunity, the tweet aims to inspire engagement and discussion within the crypto trading community.

Finally, the chart analysis, combined with the sentiment reflected in the tweet, suggests that Injective’s price is at a pivotal point. Traders are closely monitoring key support and resistance levels to determine whether the cryptocurrency can sustain a price bounce and begin a bullish trend. The coming days may provide further clarity as market conditions unfold.

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