Injective Protocol ($INJ) and Thorchain ($RUNE) – up or down from here?

by

As a seasoned researcher with over a decade of market analysis under my belt, I find myself intrigued by the current performance of both INJ/USD and RUNE/USD pairs. Having navigated through various market cycles, I’ve learned to appreciate the art of reading charts and understanding patterns.

Over the past week, both the INJ/USD and RUNE/USD have seen an upward break. Will they continue to defy the prevailing trend, or might the BTC/USD pair experience a downturn, potentially making the rise in these altcoins seem misleading?

Over the past week, certain leading cryptocurrencies have managed to surpass their falling trendlines. Among these high performers are Injective Protocol ($INJ) and Thorchain ($RUNE). Will they continue climbing, or is Bitcoin preparing to indicate a potential lower peak, potentially pulling down altcoins with it?

$INJ breaks out of the descending wedge

As a crypto investor, I’ve noticed an interesting development in the daily chart of INJ. A week ago, there was a break above the downward trendline that had been in place for quite some time. This breakout also happened to coincide with INJ emerging from a wedge formation it had been stuck in since early March this year.

The positive development is that the prices have barely surpassed the previous local peak, indicating a new higher peak has been established.

Currently, the price seems to have been turned away from the $23 horizontal resistance point, potentially moving lower. Ideally, from a bullish perspective, this could lead to a formation of a higher bottom level.

The Fibonacci levels align well with the support and resistance zones, indicating potential price movement. It’s uncertain at which level the price will rebound. Considering that the daily Stochastic RSI is decreasing, suggesting a slowdown in bullish momentum, and there hasn’t been a return to test the top of the wedge, the price may dip to the 0.382 Fibonacci, potentially creating a long wick for a retest. However, it’s also possible that the price could drop as low as the 0.618 Fibonacci level at $17.20, providing the Stochastic RSI time to bottom out and then reverse.

$23 resistance level needs to be broken

On a weekly scale, the Inj price appears to be maintaining its position near the current value of $21.35, which is close to the first Fibonacci level of $23. If the price surpasses this $23 mark, potential future levels of interest could lie at $28.50 (0.382 Fibonacci), $37.80 (0.618), and $44.50 (0.786).

$RUNE makes a higher high

The price of RUNE currently resembles that of INJ, as it has successfully broken its downward trendline and almost reached a new peak. However, there’s a possibility that the price may be pushed back by resistance around $4.95. If this happens, potential support levels can be found at $4.50 and then $4.00 according to Fibonacci retracement levels.

$RUNE must break the horizontal resistance at $4.95

Looking at a broader weekly perspective, it’s crucial for RUNE to overcome its current horizontal resistance. The Stochastic RSI suggests strong upward momentum, which might peak within the next week. Optimistic traders are hoping that by then, the resistance will have transformed into support. Potential high points could be the resistance levels at $7.40 and $8.95 if this happens.

In the meantime, an increase in the Bitcoin price is crucial for continued favorable movement in both INJ and RUNE prices.

Read More

2024-09-25 14:25