Injective (INJ) Price Just Broke the Downtrend – Is a 130% Surge Coming?

Injective has caught traders' attention after showing early signs that its long downtrend might be reversing. The token jumped over 15% today and is trading around $13.75

Injective (INJ) has been a hot topic among crypto traders as the token shows early signs of reversing its long downtrend. Commencing a rebound in March of 2023, INJ price broke above a downtrend line that formed the upper boundary of a larger selloff.

The recent move has been described as a “bullish breakout” by veteran analyst Crypto Rand, who also noted the rapid growth of the Injective ecosystem in recent months.

This observation has sparked further interest in how the token might perform from a technical perspective, especially with traders noticing an uptick in trading volume.

However, while the breakout above the downtrend line is a positive development, INJ price is still encountering resistance at several key levels that have stalled rallies in the past.

Chart of INJ price showing breakout above downtrend line and key resistance levels. Credit: Benzinga

Injective’s Downtrend Break Signals Early Momentum Shift

Largely sold off throughout 2023, Injective has been forming lower highs and lower lows. The token began the year trading above $45 before hitting lows of $12.00 as part of a broad crypto selloff.

A descending trendline, shown in purple, has been connecting the highs of this selloff and forming the upper boundary of this prolonged downtrend.

Over the past five weeks, INJ price has finally broken above this trendline. This marks the first time the asset has managed to create a higher low on the weekly chart since the selloff began.

From here, price has been consolidating below the $14.50 zone, with traders now looking for a push through this range to complete the breakout structure.

This technical shift, along with the broader network growth around Injective, was recently highlighted by Crypto Rand. These comments align with a renewed focus on the asset’s on-chain fundamentals, including DeFi protocol activity and smart contract integrations.

Crucial Support and Resistance Levels For INJ Price

In the short-term, INJ price is currently trading between local support at $13.00 and immediate resistance at $14.80. This zone has served as an area of congestion in prior trading sessions, acting as a barrier to upward continuation.

A failure to hold above $13.00 could invite a return to the macro support band around $12.00, which has been tested several times since late 2023.

Further upside targets include $15.50 and $17.00, where past rejections have occurred. These levels are drawn from previous weekly candle structures.

Volume remains modest despite the breakout above the trendline. A sharp increase in volume is usually needed to fully confirm a breakout of this nature.

As of now, there is no clear sign of aggressive accumulation, but there is sustained interest in the breakout. This interest is especially evident in the commentary regarding Injective’s ecosystem.

Traders will be watching closely for signs of this new participation, especially as price approaches historical resistance zones. A breakout above $15.50 with increased volume may be key to supporting the case for a new bullish leg.

What To Expect From Injective Next

For short-term traders and trend followers, the next key level to watch is $15.50. A successful push above this resistance could create room for a move toward the $17.00-$30.00 mark.

This magnitude of rally would continue the breakout structure and could bring INJ price back into its mid-2023 trading range.

However, for this bullish case to remain valid, traders will need to see a breakout above $15.50 with an accompanying increase in trading volume.

This would be a strong signal of institutional interest and could propel INJ to new highs. Conversely, any failure to breakout above this range could lead to renewed selling pressure and return price toward lower levels of support.