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- Injective price dipped nearly 20%, succumbing to broader market crash on Friday.
- INJ is likely not to be left behind, trapping shorters for breakdown contingent on Bitcoin price showing strength.
- A break and close below $20.00 would invalidate the bullish thesis.
Injective (INJ) price succumbed to the Friday crash that was instigated by Bitcoin price dumping to whiplash hundreds of millions in long and short positions. For late bulls, however, this could be the ideal discounted entry as the BTC halving closes in.
Also Read: Injective price coils up for a breakout after deep 40% correction
Injective price coils up for a rally
Injective price dipped nearly 20% on Friday, clearing the January 3 low of $29.21. The move could be a swift liquidity grab, triggered by large sell orders that quickly absorb available liquidity in the market. Participants may rush to capitalize on perceived opportunities, resulting in rapid price movements and fluctuations in liquidity.
With the Relative Strength Index (RSI) below 30, INJ is already oversold and may be due for a pullback. The likely play incase of a correction would be a flip of the $29.27 blockade into support, followed by a retest of this resistance-support before an extended move to the 50% Fibonacci placeholder at $37.24.
A move beyond $37.24 would encourage more buy orders with the gains likely to see the Injective price extend a neck higher to tag the $45.21. In a highly bullish case, INJ price could clear the aforementioned level to reclaim the $53.00 peak. This would denote a climb of nearly 98% above current levels. The forecasted recovery is contingent on how soon Bitcoin price recovers, and the broader cryptocurrency market with it.
INJ/USDT 1-day chart
On the other hand, if the bears fasten their hands, the Injective price could extend the fall. A drop below the Friday bottom of $22.77 would produce a lower low, invalidating the bullish thesis.