Injective Protocol (INJ/USD) Analysis: Ongoing Corrective Structure
Injective Protocol (INJ) has been in a prolonged corrective phase since its peak in March. The current chart suggests that INJ is not yet done with its correction and is likely in Wave 4 of Wave C within this corrective structure. This Wave C appears to be forming an ending diagonal, a pattern known for its overlapping waves and distinctive internal structure of 3-3-3-3-3 waves, indicating non-impulsive ABC formations within each segment.
Chart Observations and Structure
Ending Diagonal Characteristics:
- An ending diagonal structure is unfolding, characterized by overlapping Waves 2 and 4. This pattern typically occurs in a final wave of a corrective sequence, signaling a potential bottom once completed.
- The internal wave structure is composed of smaller ABC patterns, consistent with the characteristics of an ending diagonal.
Current Position in the Wave Structure:
- Based on the chart, INJ is likely nearing the end of Wave 4 within this diagonal. The recent price action has moved close to the upper boundary of the diagonal channel, which may serve as resistance.
- Once Wave 4 completes, INJ is expected to enter Wave 5 of Wave C, the final wave in this corrective structure.
Downside Targets for Wave 5
- Projected Wave 5 Targets: If Wave 5 begins as anticipated, it could bring INJ down toward the $14-$12 range, which aligns with potential support zones and the lower boundary of the diagonal channel.
- This target area also corresponds with previous accumulation zones, which may provide the foundation for a reversal or stabilization after the completion of the ending diagonal.
Summary and Outlook
- Structure: INJ is likely in the final stages of an ending diagonal corrective structure, with Wave 4 nearing completion. This setup suggests that a downward Wave 5 is imminent.
- Target Zone: Wave 5 could bring INJ toward the $14-$12 range, where it may find support.
- Pattern Significance: The ending diagonal is typically a terminal pattern, meaning that the end of Wave 5 could mark the conclusion of the broader correction since March and potentially set the stage for a trend reversal.
In conclusion, INJ appears to be approaching the final phase of its corrective structure, with a likely Wave 5 downturn expected. The $14-$12 target range could serve as a strong support zone, potentially ending the correction and providing a foundation for a new bullish phase. For now, monitoring the completion of Wave 4 and the beginning of Wave 5 will be crucial to confirm this analysis.