- Technical Reversal Signal: INJ has recently emerged out of a downtrend wedge and recovered its critical support levels.
- Good On-Chain and Futures Usage: Volumes on futures have remained strong with $219M in volume among the market and low funding rates, and it has been a case of accumulation by retail and institutional users.
- Building Momentum and Still in Danger: RSI is at 62, expressing good buying pressure without excessive pressure, and MACD indicates caution in favor of momentum.
The price of Injective Protocol (INJ) has demonstrated bullish recovery after breaking through a descending wedge pattern, one of the most common technical patterns used to indicate a change of direction. This trend appeared once INJ tested a historically critical horizontal area of support and resistance. Still, this time, it was being tested again as a level of support, as the price has rebounded off this area. As the last breakout was followed by cutting several levels of resistance, the asset is showing a bullish tendency and has received the interest of participants in the market.
Analysts are observing a projected upside move of approximately 30–35%, which would place the potential price target near $14.80, up from current levels around $11.44. For this target to materialize, sustained volume and buying interest will be required. Although momentum is building, traders are advised to remain aware of broader market conditions, as a reversal in sentiment could introduce volatility and short-term corrections.
On-Chain Metrics Reflect Strengthening Market Activity
On-chain indicators suggest growing interest in INJ, particularly from larger investors. The current circulating supply stands at 97.7 million tokens, close to its total supply of 100 million, reducing inflation risk and indicating limited supply-side pressure. With a market capitalization of $1.12 billion and a fully diluted valuation of $1.15 billion, the valuation metrics suggest stability in token economics.
Over the past 24 hours, Injective Protocol(INJ) has recorded a spot trading volume of $83.32 million, although this marks an 18.2% decrease. The futures markets continue to remain at $219 million in trading volumes and have open interests of $78.27 million, which is a testimony to how speculative and institutional investors are still present. The funding rate is relatively low, equal to 0.0013%, which means that the position of the derivatives traders is relatively neutral.
Technical indicators point to one recovery in the early term.
Intraday price movements are shown on short-term chart data, where the price varies within the range of 11.20 to 11.60. The Relative Strength Index (RSI) is at 62.09, which indicates a positive but lesser degree of buying strength. It is not in the overbought area yet, which suggests that further upward movement is still possible without risking immediate correction.
Source: Yahoo Finance
In the meantime, the Moving Average Convergence Divergence (MACD) indicator is close to the neutral line. It indicates the possibility of a bearish crossover, which may signal a halt in momentum. However, volatility and trading interest are still visible in the recent price action, as volume bursts during rallies are frequent. One of the benefits associated with this environment is the possibility of an accumulation within a short period, provided the current support levels remain intact.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
