An analyst who accurately predicted the pre-halving correction for Bitcoin (BTC) believes that a layer-1 project is on the verge of triggering breakout rallies.
Rekt Capital, a pseudonymous crypto strategist with a large following on X, suggests that Injective (INJ) is forming a significant falling wedge pattern on its weekly chart.
The falling wedge pattern is considered a bullish reversal signal, indicating a potential shift in momentum from sellers to buyers.
Rekt Capital notes, “Injective has been consolidating within this pattern for several months. A breakout above the resistance line could signal the start of a new uptrend. INJ is gearing up for a potential breakout near the apex of this structure.”
Currently, INJ is trading at $18.63, showing a decline of over 5% in the last 24 hours.
Regarding Dogecoin, Rekt Capital believes that DOGE is in the process of turning a long-term diagonal resistance into support after breaking its downtrend.
At the moment, DOGE is valued at $0.101, experiencing a decrease of over 4% today.
Looking at the broader altcoin market, Rekt Capital is optimistic about the potential for a new uptrend, citing bullish divergences across many altcoins.
“The presence of bullish divergences in various altcoins suggests that the altcoin market could be on the brink of a significant move. Patience is key in such situations,” says Rekt Capital.
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Generated Image: Midjourney