Injective token (INJ) experienced a 20% decline on Friday, potentially trapping those shorting it amidst Bitcoin’s strength. However, if INJ falls below $20, it may invalidate its bullish thesis.
On Friday, the price of Injective (INJ) dropped by around 20%, mirroring the overall market downturn. This decline might catch out those who bet against it, especially if Bitcoin performs well. If INJ falls below $20, it could mean that the optimistic outlook for INJ is no longer valid.
Injective (INJ) Price Falls Amid Friday’s Crypto Crash
The price of Injective (INJ) dipped significantly during the Friday market downturn, mirroring Bitcoin’s sharp movements. However, some investors see this as an advantageous entry point, especially with the Bitcoin halving event approaching.
Injective (INJ) experienced a notable 20% drop in price on Friday, hitting its lowest level since January 3rd, reaching $29.21. This abrupt decline may have been triggered by large sell orders, causing a rapid absorption of available liquidity in the market. As a result, participants may swiftly seize perceived opportunities, leading to sudden price fluctuations and liquidity changes.
Injective (INJ) Price Outlook Amidst Oversold Conditions
With the Relative Strength Index (RSI) currently below 30, Injective (INJ) finds itself in oversold territory, potentially signaling a forthcoming pullback. In the event of a correction, traders may look to establish the $29.27 level as support, followed by a retest of this former resistance-turned-support before targeting the $37.24 mark, representing the 50% Fibonacci retracement level.
A successful break above $37.24 could attract additional buy orders, fueling further gains for INJ. This momentum might drive the price towards $45.21, with the potential for a rapid climb to reclaim the previous peak of $53.00, marking a substantial 98% increase from current levels. However, the pace of this projected recovery will hinge on the broader market sentiment and how quickly Bitcoin and other cryptocurrencies rebound.
Conversely, if bearish pressure persists, INJ’s price, currently ranked 44th in the crypto market, may continue its descent. A drop below the Friday low of $22.77 would negate the bullish outlook, potentially leading to further downward movement and pushing INJ prices below the $20 threshold.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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