TradeCityPro | INJ: Key Triggers Amid Downtrend and Volume Shift👋 Welcome to TradeCity Pro!
In this analysis, I want to review the INJ coin for you—one of the attractive crypto networks, which with a market cap of $783 million, is ranked 73rd on CoinMarketCap.
📅 Daily Time Frame
In the daily time frame, as you can see, we have a downtrend that started after the price was rejected from the 25.43 top, and after breaking 16.04, the main bearish leg of the price began and dropped down to the 6.94 zone.
🔽 This bearish move has followed a trendline that we can also observe in most altcoins. Currently, market volume is decreasing, and it can be said that the price is diverging from the volume—and if this divergence is activated, the price will reverse trend.
✔️ The first trigger for a trend reversal is the break of the trendline. Given the volume divergence, if this happens and the trendline breaks, we can consider the break of the 8.96 trigger as the main reversal confirmation.
📈 If the price stabilizes above the 8.96 zone, it can move upward and start an uptrend. The next resistance for the price would be 16.04. However, for a spot buy, the 25.43 trigger is the most important one, which the price is still far from.
💥 On the other hand, if the 6.94 zone is broken, the price will move downward and may start another bearish leg. But an important point is that there’s a very strong support at the 5.65 zone, and if the price moves downward, it may be supported by this area—so it's better to confirm the next bearish leg with a break of 5.65.
⏳ 4-Hour Time Frame
Let’s move on to the 4-hour time frame to examine suitable triggers for futures positions.
🧩 As you can see in the 4-hour time frame, there’s a descending channel in which the price is moving, and it is currently near the top of the channel.
🔼 For a long position, if the channel top is broken, we can enter a position with the activation of the 8.51 trigger. If the price tests this zone multiple times, the position can become much more reliable, and the possibility of a sharp bullish move increases.
📊 The important point is that buying volume should increase as the price moves toward 8.51, because for a trend reversal, volume must converge with price.
📉 For a short position, the first trigger is the break of the 7.61 zone, which is a good trigger because the price is being rejected from the channel top, and there is a possibility that the price moves toward the midline or bottom of the channel.
🎲 The main trigger for the short position is the break of 6.94, which is a very important low, and breaking this zone can lead to a sharp move down to the 5.65 zone.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
