Crypto analyst and strategist Rekt Capital is forecasting that the Layer-1 project Injective (INJ), along with the broader altcoin market, may soon enter a bullish trend.
Bullish Signs for Injective (INJ)
Rekt Capital has identified a significant falling wedge formation on Injective’s weekly chart. This formation is often seen as a bullish reversal signal, indicating that selling pressure is diminishing while buyers are slowing the decline:
“Injective has been developing this channel for months. A weekly close above the light blue diagonal resistance could be enough to start a new bullish trend. INJ will likely move as close as possible to the top of this structure before a breakout.”
At the time of writing, INJ is trading at $18.63, down over 5% in the last 24 hours.
Dogecoin (DOGE) Retesting Support Levels
The analyst also sees potential in Dogecoin (DOGE), noting that the popular memecoin is continuing to flip its long-term diagonal resistance into support. Rekt Capital explains that DOGE has been in a retest phase following its breakout from a macro downtrend:
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“DOGE has been retesting the downtrend (blue) ever since it broke out. A successful retest will confirm a new macro bullish trend.”
As of now, DOGE is trading at $0.101, with a daily loss of over 4%.
Promising Developments in the Altcoin Market
Rekt Capital observes that many altcoins across the market are showing bullish divergence, a signal that could mark the start of a new upward trend:
“There is a bullish divergence developing across many altcoins, giving reason to believe that the altcoin market may be on the verge of something special. However, special things take time.”
A bullish divergence suggests that, despite flat or declining prices, momentum is building, indicating a potential reversal in the asset’s trend.
Rekt Capital’s analysis points to potential gains for significant altcoins like Injective and Dogecoin. The observed bullish divergence across the altcoin market could serve as a critical signal for investors to watch in the coming periods.
For more updates and in-depth crypto market analysis, stay tuned to The Bit Journal.
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