Injective Protocol (INJ): Elliott Wave Analysis and Outlook

We have included INJ (Injective Protocol) in our portfolio due to its promising technical and fundamental potential. Based on our Elliott Wave analysis, INJ appears to be in a bullish third wave (Wave 3) of the larger cycle, which is typically the most powerful and impulsive of all the waves.


Elliott Wave Structure: Current Position

  1. Overarching Wave 3: INJ is within the third wave of the larger cycle, which aligns with strong momentum and price acceleration.
  2. Subwave Analysis: Within this Wave 3, we believe INJ is currently developing the fifth subwave (Wave v of 3). This subwave should carry INJ towards a target of approximately $70, representing a key resistance area and Fibonacci extension level.

Fibonacci Levels and Price Targets

  • Wave Projection: Using Fibonacci extensions, we can anticipate the following targets for Wave v of 3:
    • 1.618 Extension: ~$70 (primary target for Wave v of 3)
    • 2.0 Extension: ~$85 (possible overextension scenario)
  • Support Levels (Wave iv Correction): Before Wave v completes, support levels at $22.99 (0.382 retracement) and $20.73 (0.5 retracement) were respected as the completion zone of Wave iv.

Key Technical Observations

  1. Ascending Trendline Support: The blue trendline indicates a strong upward trajectory, offering robust support as INJ progresses in its impulsive wave.
  2. Momentum Indicators: RSI has cooled slightly but remains above neutral, signaling room for continued upside in the current wave.
  3. Channel Formation: Price action remains within the ascending channel, with potential for the upper boundary to align with the $70 target.