Injective (INJ) has hit a five-month high after retesting a crucial resistance level on Monday and attempting to break out from a bullish pattern. Some analysts suggested that the cryptocurrency will have a massive run in the coming weeks.
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Injective Retests Crucial Levels
Over the past month, Injective has recorded a substantial bullish performance, climbing 40% since late June, when the cryptocurrency traded below the $10 support. Since hitting its December high of $35.26, INJ has retraced around 60%, falling below this key support multiple times.
During the April-May market recovery, the cryptocurrency broke out of its multi-month downtrend and climbed to its $10-$15 local price range, hitting a multi-month high of $15.48.
However, the June pullback sent the token’s price to the $9 support zone before it bounced, tested the $10-$12 area, and broke out of its one-month downtrend in early July.
At the time, analyst Crypto Rand suggested that a breakout above the $12 resistance level would “trigger the bull reversal,” which would push the token’s price toward the local range high.
Injective has been attempting to reclaim the crucial $15 range high since its early July breakout, hitting a five-month high of $16.35 on Monday and passing the $16 barrier for the first time since February.
Amid the token’s momentum, Crypto Rand noted that “INJ following the path, we are going straight to $30” as the first stop.”
He added that Injective has become the Layer-1 (L1) with the highest code commits over the past 365 days. A recent report showed that the network is leading with 36,500 commits, 3.2% ahead of other L1s.
Is A Rally To New Highs Near?
Analyst Ali Martinez highlighted that Injective could see a 66% rally if it breaks out of a triangle formation. According to the chart, the cryptocurrency has been forming an ascending triangle pattern since March, with the key resistance level sitting around the $15 area.
Amid its start-of-week pump, the cryptocurrency briefly broke out of the pattern but ultimately failed to hold above the crucial resistance. Notably, INJ fell below the $15 mark after failing to reclaim this level, retracing 10% intraday. However, reclaiming the key resistance would propel Injective to $25, a level not seen since January.
Meanwhile, market watcher Crypto Patel pointed out an inverse Head and Shoulders pattern forming on Injective’s chart over the past six months, which could propel the token to a new yearly high if it breaks out.
He highlighted that the INJ’s rising trendline support remains intact, while the pattern’s neckline has been retested twice, with the price compressing between these two levels.
To the analyst, Injective needs a daily close and hold above the $16.20 area to confirm the breakout. If it reclaims this level, the setup would target a 153% move toward $41 mark, with the post-breakout initial targets sitting around the $26.36 and $34.32 resistances.
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On the contrary, he affirmed that falling below the $12 support zone would invalidate the setup, which could also send the token’s price to the next support level around the $10 mark.
As of this writing, Injective trades at $14.70, a 4.6% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com