Injective Trading Below Resistance; Lower Low Nexx
2024-10-31

Ma200 continues to work as resistance...

How are you doing my fellow Cryptocurrency trader?
I hope you are having a wonderful day.

INJUSDT (Injective) failed to break the MA200 black line as a resistance level. On the 1st of October it was rejected on a wick. Then again on 17-Oct., a rejection.

The last rejection led to a minor drop and local higher low. This higher low led to a weak four days bounce, bullish action, but we are seeing a reversal far away from MA200, this level is no longer relevant as the bears gain control of the chart.

Can Injective recover and move higher, new highs?
Or, will it continue lower and produce a lower low?

The chart says it all.

We can see how as INJUSDT failed to move above resistance, trading volume continues to drop. This drop in trading volume is the signal that gives away what comes next. Low volume means no action, no action means no traders, no traders means no buying, and no buying means that liquidity needs to be found before we see change.

Liquidity can be found at the next support range and this would match perfectly what the other pairs are doing; it would be the resumption of the bearish trend.

A new drop is very likely to push all the indicators into oversold. This would create a frenzy of activity, new buyers, high volume and the market can start to turn.

The chart is saying down so, down we go.

It should be a fast drop and the recovery should be long.

It will take just a few weeks for the entire correction to unravel and it will take 3-5 months before INJUSDT moves back above $40 or so.

Patience is key.

Wait for the next major flush before buying, better prices will be possible next month.

Namaste.