Injective (INJ) is currently setting the stage for a massive price upswing as the TD Sequential indicator prints a rare buy signal on the weekly chart.
This is according to prominent market analyst Ali Martinez, who remains bullish on Injective despite the recent price turbulence. Notably, INJ has continued to record declines since it hit a 1-month high of $28.96 on May 21. At its current price, Injective has dropped 11% from this high, recording six consecutive days of intraday losses from May 21 to 26.
TD Sequential Flashes Buy Signal
Amid the observable volatility, Martinez suggests that Injective could be looking to record a price reversal soon. He leveraged a weekly chart to indicate that the TD Sequential indicator has flashed a buy signal for the crypto asset, with the bulls on standby to propel prices up.
Traders use the TD Sequential tool to spot potential trend exhaustion and market reversals. It involves two phases: the setup phase, which counts consecutive price bars moving in one direction, and the countdown phase, which confirms the setup by counting additional price bars.
Martinez called attention to historical context as one of the contributing factors to his confidence in a looming price reversal. Notably, the last two times the TD Sequential indicator printed a buy signal on the Injective weekly chart, INJ went ahead to record substantial price rallies.
The last two buy signals from the TD Sequential on the #Injective weekly chart led to impressive bull runs of 700% and 555%. Now, this indicator is flashing another buy signal, suggesting that $INJ could rally again! pic.twitter.com/D5P5I2BbtY
— Ali (@ali_charts) May 27, 2024
The first instance occurred in January 2023 following three consecutive weeks of sustained losses. At the time, INJ had collapsed from $1.7 to a low of $1.2 within three weeks. After this downtrend, the TD Sequential displayed a buy signal. Injective eventually skyrocketed by 700% to a peak of $9.99 in April 2023.
In the second occasion, INJ had dropped to $7.185 in October 2023 amid a bearish consolidation pattern. Following this drop, the TD Sequential printed another buy signal. This led to another price upswing, with Injective claiming its previous all-time high price of $44 in a 555% upsurge as of December 2023.
Injective Sets Stage for a Third Uptrend
Injective breached this ATH in March this year amid Bitcoin’s (BTC) massive run. However, it has now collapsed to levels last seen in December 2023. Martinez expects the tables to turn soon, projecting a similar upsurge now that the TD Sequential has flashed a third buy signal. The analyst failed to make any price projections.
Meanwhile, Injective currently trades for $25.91, up 4.18% today as it rides on the ongoing market rebound. The cryptocurrency aims to secure a close above the upper Bollinger Band resistance at $28.12 to sustain its upward push. However, the bulls need to defend the 20-day SMA support ($24.758) to hedge against a collapse to the $20 level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
