INJ Technical Analysis Feb 3

INJ is stuck in a narrow range at the $3.72 level; while RSI at 32.96 is approaching the oversold region, indicators like MACD and Supertrend are giving downside signals. At this critical juncture, both an upside with a strong hold from supports and a new low search with resistance rejection make both scenarios possible.

Current Market Situation

INJ is trading at the $3.72 level with a minimal 0.03% change over the last 24 hours and exhibiting a squeezed structure in the $3.58-$3.73 range. Volume remains at a moderate level of $31.62M, while the overall trend continues downward. Although RSI at 32.96 is close to the oversold boundary in technical indicators, MACD confirms bearish momentum with a negative histogram. The price remains below EMA20 ($4.30), and the Supertrend indicator points to $4.65 resistance, issuing a bearish signal. In multi-timeframe (MTF) analysis, a total of 11 strong levels were identified across 1D, 3D, and 1W charts: 2 supports/1 resistance on 1D, 2 supports/1 resistance on 3D, and a distribution weighted toward 3 supports/4 resistances on 1W. Critical supports stand out at $3.3868 (score:74/100) and $3.6247 (score:63/100), with resistance at $3.9176 (score:71/100). This structure offers traders the opportunity to monitor both potential breakouts and fakeouts; for example, positive divergence formation on RSI could serve as an early warning for upside, while low-volume resistance tests increase downside risk.

Scenario 1: Bullish Scenario

How Does This Scenario Unfold?

For the bullish scenario, a clear break and close above the $3.9176 resistance is essential first. If supported by increasing volume, this breakout opens the path to EMA20 ($4.30) and gains momentum with a Supertrend direction change. Positive divergence on RSI (where price makes a new low but RSI forms a higher low) or MACD histogram approaching the zero line would provide early confirmation signals. Holding strong on 1W timeframe supports (around $3.3868) in MTF prepares the ground for an overall trend reversal. A general altcoin rally or BTC stabilization could trigger INJ’s bullish scenario; traders should evaluate pullbacks after breakout as buying opportunities and monitor holds above $3.73 against fakeouts.

Target Levels

The first target is the $4.65 Supertrend resistance, followed by the main bullish target at $5.4886 (score:51/100). With stronger momentum, surpassing MTF resistances (above $4.65) could extend to the $6.00 psychological level and EMA50 (around $5.80). The risk/reward ratio (R/R), calculated from the current $3.72, offers approximately 1:1.6 to $5.4886; the scenario is invalidated by a close below $3.6247. Verify these levels with Fibonacci extension tools (e.g., 1.618 level) and follow the volume profile.

Scenario 2: Bearish Scenario

Risk Factors

The bearish scenario is triggered by a close below the $3.6247 support; this breakdown accelerates even with low volume as MACD becomes more negative and RSI drops below 30. Supertrend remaining bearish and distancing from EMA20 directs momentum downward. Excess resistance (4R) on 1W in MTF increases overall pressure, while BTC’s downtrend amplifies effects on altcoins. Support tests without sudden volume spikes signal rejection; traders should monitor rejection from $3.73 resistance and bearish candlestick patterns (e.g., shooting star). Macro risks like increasing BTC dominance strengthen this scenario.

Target Levels

The first target is $3.3868 (score:74/100); if broken, the $3.00 psychological support and main bearish target $1.6352 (score:22/100) come into play. Deeper declines could test 1W supports. R/R from current levels to $1.6352 offers an aggressive ratio of around 1:2.2; invalidation occurs with a close above $3.9176. Place stop-losses 1-2% below supports and manage with trailing stops.

Which Scenario to Watch?

The decision point is in the $3.73-$3.92 range: volume increase and RSI divergence confirm bullish on upside breakout, while candlestick close and MACD negativity confirm bearish on downside breakout. Daily closes are critical; for example, a red candle below $3.6247 confirms downside, a green candle above $3.9176 confirms upside. Apply a wait-and-see strategy during low volatility and follow news flow (INJ ecosystem updates). Be prepared for 2% moves in both scenarios.

Bitcoin Correlation

BTC is in a downtrend at $77,937 with a 1.07% decline; Supertrend is bearish and main supports at $76,624-$74,585 are critical. If BTC breaks these supports, altcoins like INJ could see an additional 20-30% decline, with dominance increase pressuring INJ. Conversely, if BTC breaks above $79,364 resistance, INJ’s bullish scenario strengthens. Monitor INJ/BTC pair: drop below 0.000047 is bearish, above 0.000050 is bullish. BTC movements influence INJ volatility by about 70%.

Conclusion and Monitoring Notes

INJ at a critical juncture: $3.9176 breakout and BTC stabilization for upside, $3.6247 breakdown for downside are the main points to watch. Traders should make their own decisions by analyzing indicator divergences, volume profiles, and MTF alignment. For detailed review, visit the INJ Spot Analysis and INJ Futures Analysis pages. Markets are dynamic; follow regular updates.