Injective (INJ) Price Analysis: Will the Descending Channel Yield in the Face of Bullish Pressure?

Injective [INJ] was trading at $27.5 and below the 50% Fibonacci level resistance at $29.6. These gains came alongside a Bitcoin [BTC] rally that reached from $57.3k to $67.6k.

Injective [INJ] price was at $27.5 and below the 50 Fibonacci resistance level at $29.6. These gains came alongside Bitcoin [BTC]'s rise from $57.3K to $67.6K.

Injective investors have a reason to expect positive price movements. The move above $24.27 broke the recent low high and turned the structure bullish. This was rewarded with a move to channel resistance.

Will the rolling channel capitulate against bull pressure?

Source: INJ/USDT on TradingView

On the daily chart, INJ has formed a rolling channel marked in purple. It has been in place since the beginning of April. At press time, resistance at $28.2 was being tested. The Fibonacci retracement level above could also push buyers back.

While the past two-month defense encouraged the $20 zone, the trend has consistently pointed downward since the losses in the second half of March. Meanwhile, recoveries that disrupt market structure appear to be periods of calm.

The idea that buyers are persistently weak and price recoveries could be liquidity hunts is reinforced by OBV. The volume indicator continued its bearish trend and a breakout from the range gains was unlikely.

To the south, $24.18 and the $21.5-$22 zone, which is the middle channel mark, are two levels that could see a price bounce if prices push back from the $27.5 zone. .

There are accumulation signals but Injective investors should pay attention to this

Source: Santiment

30-day MVRV ratio was +19.75 indicating that short-term INJ investors made a significant profit. In turn, this could quickly lead to a wave of selling. On the other hand, the rising average coin age indicated network-wide accumulation.

Standby circulation has also been relatively low since mid-June. A sharp increase in this metric heralds a selling wave.

Source: Coinalyze

Realistic or not, here is the INJ market cap in BTC terms

Open Interest was still in an uptrend but has slowed down since July 17. Spot CVD also stopped in the past four days. Together they showed that buying pressure was decreasing.

Despite the accumulation signal, weakened short-term sentiment and demand indicated that a pullback could be coming soon.

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