As a researcher with a background in technical analysis, I find Josh Olszewicz’s forecast on Injective (INJ) intriguing. His use of the classic bullish chart pattern known as the inverted head and shoulders (iH&S) is a respected method among technical analysts for predicting potential price reversals following a downward trend.
In a recent analysis on X, well-known cryptocurrency expert Josh Olszewicz (@CarpeNoctom) predicts that Injective (INJ) could experience a substantial 33% increase in value according to the inverted head and shoulders (iH&S) chart pattern. This technical indication points towards a potential reversal from current bearish tendencies, which may lead INJ’s price to reach new local peaks.
Injective Price Prepares For Lift-Off
As a technical analysis expert, I frequently encounter the iH&S pattern in various charts, including Olszewicz’s. This particular formation is renowned among analysts for signaling potential bullish reversals following a downtrend. The iH&S pattern can be identified by three distinct troughs. The middle trough, often referred to as the “head,” represents the deepest point in the trend and is typically followed by two shallower troughs, which I refer to as the “shoulders.” These shoulders are approximately equal in depth.
In the given chart, the left shoulder emerges approximately around mid-April, touching the $23.50 mark briefly. Then, a dip occurs in May, reaching a low of around $21.08. The chart then forms the head. Lastly, the right shoulder appears around early June, almost touching the $23.90 level, which is similar to the left shoulder.
As a crypto investor, I closely watch the technical patterns in the market, and one such pattern that has caught my attention recently is the head and shoulders formation. In this setup, the neckline, which is a significant line of resistance, is drawn across the connecting peaks between the left shoulder, right shoulder, and the head. On Olszewicz’s chart, this line lies around $28.70. If the price breaks above this level, it would be considered a bullish sign, indicating that the pattern has completed, and an uptrend for INJ is likely on the horizon. According to the chart analysis I have conducted, the INJ price seems poised to breach this critical threshold soon.
As a crypto investor, I closely monitor various technical indicators to gain insights into potential price movements. Among these, the analyst’s chart with the integrated Ichimoku Cloud is particularly noteworthy. The Ichimoku Cloud offers a dynamic perspective on support and resistance levels. Currently, the INJ token’s price finds itself hovering close to the lower edge of a red cloud. This situation suggests an imminent resistance zone that traders should keep a keen eye on.
As an analyst, I’d like to add depth to my analysis by introducing Fibonacci extension levels derived from the lowest point of the head to the neckline of the inverted head and shoulders (iH&S) pattern. These levels serve as potential price targets should a bullish breakout materialize. The 1.618 Fibonacci extension is situated at $34.74, while a more ambitious 2.0 extension lies at $39.09. These targets act as significant resistance levels where traders may choose to book profits. Consequently, understanding these potential resistance areas is essential for anticipating future price trends.
Expert: Josh Olszewicz’s approach to analyzing INJ‘s price movement involves utilizing the iH&S pattern in conjunction with other technical indicators like the Ichimoku Cloud and Fibonacci extensions. Based on this analysis, there’s a strong possibility that INJ’s price will rise towards $34.74, and potentially reach as high as $39.09. This represents a significant gain of approximately 33% from the current pricing.
It’s crucial for investors and traders to stay attentive to INJ‘s price fluctuations, focusing on trading volume trends and market opinion that may amplify or obstruct the anticipated upward trend.
At press time, INJ traded at $29.51.
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2024-06-07 14:10