Injective (INJ) is currently testing a major resistance level—$6—and if history repeats, the token could be on a trajectory toward hitting $10. INJ reached this level after Binance US listed the token on its spot market. In addition, the crypto exchange also confirmed plans to introduce native INJ staking support for U.S. users in the near future.
INJ crosses above the 200-day MA
INJ, which is currently trading below the $6 level, has crossed a major resistance level, which is the 200-day moving average. Once the token crossed this level, the buying activity intensified as the traders saw the move as an important milestone.
The 200-day moving average is widely considered a key indicator of the long-term market trend, and reclaiming it often signals that bearish momentum is weakening while bullish sentiment begins returning to the market.
As momentum strengthened, more traders started entering positions in anticipation of a larger recovery move. Swing traders and institutions often flock to technical breakouts above the 200-day moving average because they closely watch this level across the market. The breakout can also trigger short covering from bearish traders, adding further upward pressure to the price.
Binance US listing INJ boosts the price action
It was not just the technical indicator alone that skyrocketed prices to this level; there was also a major event that took place in mid-May. The world’s largest crypto exchange, Binance, listed the INJ/USDT pair for spot trading. And it also mentioned that it would support users near the US with native INJ staking. This announcement spiked the prices and helped INJ’s recovery.
Bottoming usually occurs when sellers become exhausted and the price stops making aggressive new lows. Instead of continuing to crash, the asset starts trading within a more stable range as buyers slowly begin stepping back into the market.
During this phase, market sentiment gradually shifts from extreme fear toward cautious optimism. Long-term investors and traders often look for signs that the asset may have reached undervalued levels, leading to accumulation at lower prices. Volume may also begin increasing as buying interest returns and bearish momentum weakens.
Bottoming is important because it can mark the early stages of a potential trend reversal. Once confidence starts returning and key resistance levels are broken, the market may transition from consolidation into a recovery phase.
However, bottoming is usually a gradual process rather than an instant reversal, which is why traders often wait for confirmation signals such as higher lows, stronger volume, or moving average breakouts before concluding that a new uptrend has begun.
INJ approaches golden cross
Meanwhile, there is going to be a golden cross on the INJ chart. The 50-day MA is approaching the 200-day MA from below. If these two lines intersect, a golden cross would occur. Typically, when a golden cross occurs, prices shoot up instantly.
When observing the weekly chart below, INJ is currently stuck at the 2023 November price level, where there was an instant spike that saw the price reach above $9. The case for the reciprocation of this pattern is very strong at the moment, as the golden cross is also about to happen.
Given that the golden cross occurs and the crypto market reacts to this positive event by taking new long positions, there is a high chance that INJ will be targeting hitting values above $9.