Injective [INJ] price surges over 15% in 24 hours, can it reclaim the $35 level and trigger a rally?

Despite recent market fluctuations, Injective [INJ] is displaying notable strength. While the past month has only seen marginal gains of 0.39% for INJ, there has been a decline of nearly 4% in the last seven days, with an additional 2.7% drop at present.

However, the weekly charts show promising price action for Injective as it consolidates above its previous all-time high set in 2021. If INJ can push higher towards the $35 level while holding above this crucial support, it could signal a bullish trend in the short term, instilling confidence in investors.

INJ demonstrates the potential to reach higher price targets, particularly if it maintains its position above the key level of $21.60. Enthusiasts remain positive about INJ’s performance and foresee it potentially outpacing the market in the upcoming year.

While 2024 has not been the most favorable for INJ so far, many anticipate a long-term rally, with some setting ambitious targets of $100 or more.

The price consolidation observed in the 4-hour timeframe is approaching a critical turning point, where a strong bounce from this level could catalyze a notable 20-30% move in the short run, laying the foundation for a parabolic surge by 2025.

INJ Evaluation and Risk Assessment

Comparing Injective’s valuation against Bitcoin (INJ/BTC) reveals a prior decline but currently hints at a potential recovery phase. A double bottom pattern has emerged, breaking to the upside and now undergoing a retesting phase.

If INJ/BTC manages to sustain momentum post-retest, this could signify the onset of a bullish rally. Conversely, a breach below the 2021 high, rendering the double bottom pattern invalid, may trigger a decline before any potential rebound.

An important aspect to consider is Injective’s short-term bubble risk indicator, which currently stands at 1.05, signaling stable market sentiment. This stability offers confidence to traders eyeing long positions, given the potential gains implied by the current price action.

Percentage Deviation from All-Time High (ATH)

INJ’s drawdown percentage from its all-time high sits around 56%, presenting an opportunity for long-term holders to anticipate a recovery. Nevertheless, owing to the market’s unpredictable nature, these gains are not assured.

With Bitcoin nearing the $70,000 threshold, there is a likelihood of a broader bullish momentum across the crypto sphere, including INJ. While Injective seems poised to uphold its 2021 high and sustain its rally, traders should exercise caution and monitor crucial levels diligently for optimal trade decisions.