A crypto strategist who identified the pre-halving correction for Bitcoin (BTC) believes a Layer 1 project is about to trigger breakout rallies.
Pseudonymous analyst Rekt Capital tells his 499,300 followers on social media platform X that Injective (INJ) appears to be forming a large descending wedge structure on the weekly chart.
The falling wedge pattern is generally considered a bullish reversal signal because it indicates that sellers are losing momentum while buyers step in to slow the price decline.
Said Rekt,
“Injective has been developing this channel for months.
A weekly close above the light blue diagonal resistance could be enough to start a new uptrend.
INJ will coil as close to the top of this structure as possible in preparation for an escape.
At the time of writing, INJ is trading at $18.63, down more than 5% in the past day.
As for memecoin Dogecoin, the analyst believes that DOGE is still in the process of turning a long-term diagonal resistance into support.
“Since breaking its macro downtrend (blue), DOGE has seen a post-breakout retest of that downtrend.
A successful retest would confirm a new upward macroeconomic trend.
At the time of writing, DOGE is worth $0.101, down more than 4% on the day.
As for the broader altcoin market, Rekt believes that altcoins are about to start a new uptrend.
“The number of bullish divergences developing across many altcoins gives reason to believe that the altcoin market could be on the verge of something special.
But special things take time.
A bullish divergence is a reversal signal suggesting that an asset is gaining momentum even though it is moving down or sideways.
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