Bitcoin is trading at the $40,000 mark, with the local trend remaining downward. This could lead to the asset soon reaching new lows. Here’s an in-depth review of the market situation for Uniswap (UNI) and Injective (INJ) as of Wednesday, January 24.
Uniswap (UNI)
The UNI chart closely mirrors that of BTC due to their high correlation. The coin is currently hovering near the support zone of $5.50–$5.71, which it has been testing for the fourth time in the past month. This consistency from sellers might lead to a breakthrough of this level.
However, if Bitcoin steadies, UNI could resume its upward trajectory. For this to happen, buyers need to overcome the resistance at $6.02 and establish a foothold above the sell zone of $6.32–$6.64. Such a turn of events would pave the way to new highs and a movement toward the $6.98 and $7.16–$7.5 range.
Should BTC continue its downward correction, UNI might drop to a new local low within the $5.00–$5.25 range.
UNI chart on the H2 timeframe
Injective (INJ)
While Injective purchases appear robust on the chart, the asset has followed BTC in a downward correction. Its nearest support zone lies at $29.00–$31.3, where some buyer reaction has already been noted.
The asset currently leans towards a continued downward trend. In the event of an extended correction, the next support level is at $27.3. This could be reached if BTC falls below the $38,000 threshold.
However, an upward trend is still a possibility. This would require Bitcoin to regain its upward momentum. If this happens, INJ could quickly test resistance levels at $35.11–$37.40, $39.12, and the $42–$44 bracket. Overall, the asset now presents an intriguing opportunity for spot accumulation.
INJ chart on the H3 timeframe
The market isn't anticipating any major fundamental shifts, suggesting a day of relative calm and modest volatility.
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the price movement between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
