Injective price could rise 10% before shorts have a field day

• Injective price is bullish, with momentum indicators pointing to growing momentum
• INJ could rise 10% to the weekly FVG at $8.273, filling the inefficiency before a potential pullback.  
• A break and close above the CE at $8.407 would confirm an uptrend, likely reaching the $8.901 hurdle.

Injective (INJ) price is trading with a bullish bias, outperforming many cryptocurrencies, including Bitcoin (BTC). The rally could continue but it all depends on how bulls play their hand. Meanwhile, experts advise that now could be the ideal time to invest in altcoins with the countdown to the Bitcoin halving continues.

Also Read: Best period to invest in altcoins is 6-10 months prior to the Bitcoin halving, that's now; analyst says

Injective price eyes 10% rise

Injective (INJ) price engaged a bullish gear on September 11, jumping off from the $6.601 support level after this buyer congestion level broke its 20% fall. With momentum indicators displaying a bullish outlook, INJ could rise 10% to the weekly fair value gap (FVG) at $8.273.

A fair value gap acts as a magnet for asset prices. It represents an inefficiency that needs to be filled. As such, it is likely that Injective price will rise to fill the inefficiency, with the lower boundary of the FVG serving as the take profit level for conservative longs.

A break and close above the consequential encroachment (CE) at $8.407 would confirm the uptrend, potentially going as high as the July 20 lows of $8.901. Notably, the CE is the midline of the FVG. Such a move would constitute a 20% climb above current levels.

The Relative Strength Index (RSI) is headed north, suggesting rising momentum, corroborated by the Awesome Oscillator, which is now positive after its histogram bags steadily maintained the green color transitioning from the negative into the positive territory.

INJ/USDT 1-day chart

Conversely, early profit-taking is likely to cut the forecasted 10% climb short, sending the Injective price down below the $7.000 psychological level, marking a break below the previous day’s low. In the dire case, the slump could extend below the $6.601 support floor. A decisive daily candlestick close below this level would be defining, beginning a new downtrend considering it marks the last lower low of the previous uptrend.

On-chain analytics and market intelligence platform IntoTheBlock show that at the current price, 92.14% of addresses holding INJ are sitting on unrealized profit (in the money), while only 2.50% are sitting on unrealized losses (out of the month). Meanwhile, 5.36% are breaking even (at the money).

INJ GIOM

With more addresses in the money, investors are likely to give in to their profit-taking appetite soon. The ensuing selling pressure could send Injective price south, confirming the invalidation thesis. 

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