Waves, Celo, and Injective Protocol (INJ) breakout as DeFi reawakens
Bitcoin (BTC) extended its relief rally on Tuesday and reclaimed a market capitalization above $1 trillion.
While many traders panicked during Bitcoin’s recent fall below $47,000, fund manager Dan Tapiero said that he spotted a rare TD sequential buy signal during the low. The last time this signal was seen was in March 2020 when Bitcoin price traded near $3,600. Tapiero believes Bitcoin remains on target to reach $100,000 this year.
However, even after the recent rise above $55,000, Bitcoin’s market dominance continues to lag at 49.5%, according to CoinMarketCap data. This shows that crypto investors are focusing on altcoins, with several hitting new all-time highs.
The WAVES/USDT pair could give back some of its gains and drop to the $16–$17 zone. If the bulls can flip this zone into support, it will suggest that sentiment remains positive and traders are accumulating on dips.
The 20-day exponential moving average (EMA) of $14.64 has started to rise, and the relative strength index (RSI) is in the positive zone, indicating the path of least resistance is to the upside.
A strong bounce off the support zone could result in a retest of $21.09. If buyers can drive the price above this resistance, the pair could resume its uptrend and reach $25.
This bullish view will be invalidated if the bears sink the price below the 20-day EMA. Such a move could pull the price down to the 50-day simple moving average (SMA) of $12.65.
Injective Protocol recently announced that it secured $10 million in funding from several investors, including Pantera Capital and billionaire Mark Cuban, for its DeFi protocol, which is alleged to have the best of both centralized and decentralized exchanges. Injective’s aim is to build a decentralized competitor to Robinhood.
On the development front, the protocol announced on April 15 that it had achieved “Trezor support for the EIP-712 signature standard,” which will allow Trezor users to access Ethereum-based applications.
Injective has been partnering with several blockchains to improve the experience for its users. Thus far in April, it has announced collaborations with API3, Harmony, Staked, Litentry, Persistence, Big Data Protocol and Klaytn.
Additionally, periodic token drops in Equinox Staking may have been an added attraction to the investors.
Injective’s native token, INJ, rose from $10.91 on April 20 to an all-time high at $21.55 on April 22, recording a 97% increase in three days. The bulls could not sustain even higher levels on April 20, as seen from the long wick on the candlestick.
The sharp rally on April 20 and 21 propelled the price above the overhead resistance of the range, but the bulls have not been able to consolidate their advantage. The bears pulled the price back into the range on April 22.
Although the CELO/USDT pair broke below the 20-day EMA ($5.01) on April 23, the bulls purchased the dip to the 50-day SMA ($4.39). The buying momentum picked up again, and the bulls cleared the $5.76 hurdle on April 25 but could not sustain the breakout.
The Doji candlestick pattern on April 26 and the inside day candlestick pattern on April 27 suggest uncertainty among the bulls and the bears. If the bulls sustain the price above $5.76, a retest of $7.23 may be in the cards. A breakout of this resistance could result in a rally to $8.02.
Conversely, if the bears sink the price below the 20-day EMA, it will suggest that the pair could remain range-bound for a few more days.
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