A crypto strategist who weathered the pre-halving correction for Bitcoin (BTC) thinks a tier-1 project is close to a breakout.
Pseudonymous analyst Rekt Capital tells his 499,300 followers on social media platform X that Injective (INJ) appears to be forming a large falling wedge structure on the weekly chart.
The falling wedge pattern is typically viewed as a bullish reversal signal because it indicates that sellers are losing momentum while buyers intervene to slow the price decline.
Says Rekt,
“Injective has been developing this channel for months.
A weekly close above the light blue diagonal resistance could be enough to kick off a new uptrend.
INJ will be as close to the top of this structure as possible in preparation for an outbreak.”
At the time of writing, INJ is trading at $18.63, down more than 5% in the past day.
As for the top memecoin Dogecoin, the analyst believes that DOGE is still in the process of turning a long-term diagonal resistance into support.
“Since breaking the macro downtrend (blue), DOGE is experiencing a retest of that downtrend after the breakout.
A successful retest would confirm a new macro upward trend.”
At the time of writing, DOGE is worth $0.101, down more than 4% on the day.
As for the broader altcoin market, Rekt says believes that alts are close to starting a new uptrend.
“The amount of bullish divergences developing among many altcoins gives reason to believe that the altcoin market may be on the cusp of something special.
However, special things take time.”
A bullish divergence is a reversal signal that indicates an asset is gaining momentum even if it is trading lower or sideways.
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Generated image: Midjourney