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
- Overarching Wave 3: INJ is within the third wave of the larger cycle, which aligns with strong momentum and price acceleration.
- 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
- Ascending Trendline Support: The blue trendline indicates a strong upward trajectory, offering robust support as INJ progresses in its impulsive wave.
- Momentum Indicators: RSI has cooled slightly but remains above neutral, signaling room for continued upside in the current wave.
- Channel Formation: Price action remains within the ascending channel, with potential for the upper boundary to align with the $70 target.