Injective Is Forming A TD Sequential Buy Signal On Its Weekly Chart

An analyst has pointed out that Injective is forming a buy signal that previously led to 700% and 555% rallies for the asset's price.

An analyst has highlighted a Tom Demark (TD) Sequential buy signal that has recently formed on the weekly price of Injective (CRYPTO: INJ). This technical analysis (TA) indicator is known for signaling potential points of reversal in an asset's price.

The TD Sequential has two phases: setup and countdown. In the setup phase, candles of the same polarity (green/red) are counted up to nine. When nine candles of the same type are in, the price might have reached a turning point.

If the candles leading up to the completion of the setup are red, the TD Sequential would be signaling a potential bottom in the asset. In contrast, if the phase ends with an uptrend, the indicator would be suggesting a point of selling pressure.

After the setup is complete, the countdown phase begins. In this second phase, candles of the same type are counted again, this time till thirteen. After the thirteenth candle of the same polarity, the price might have encountered another likely top or bottom.

According to Martinez, a TD Sequential signal of the former type has been completed on the weekly price of Injective. Below is the chart shared by the analyst that reveals this recent signal in cryptocurrency.

As the graph shows, Injective has finished a TD Sequential setup with a downtrend, indicating that the asset might have reached a point of reversal towards the upside.

In the chart, the analyst has highlighted what happened the last two times the weekly price of the cryptocurrency encountered this signal. The first of these signals appeared to have preceded a rally of over 700%, while the other resulted in a surge of almost 556%.

Given this bullish precedence, it's possible that the latest TD Sequential buy signal could also lead to another run of sharp bullish momentum for the asset's price.

However, it's worth noting that the TD Sequential hasn't always been completely reliable for the coin. As is visible in the graph, the indicator flagged a sell signal partway through the second of the rallies above.

It now remains to be seen how the Injective price develops from here on out and whether the TD Sequential buy signal will have an immediate bullish effect, just like it did the last two times.

INJ Price: Injective has been trading sideways over the past month. Its price is currently hovering around $26, roughly in the middle of the range.