Injective, known by its ticker INJ, has seen a remarkable 500% surge in value since October 12th. Technical indicators suggest a potential increase to $55, following a breakthrough above the $25 mark. However, earlier investors might contribute to selling pressure.
A detailed technical analysis by a prominent crypto analysis platform identified key profit-taking levels for INJ holders. They recommend waiting for a market pullback before re-entering. The token’s on-chain data also indicates it may be overextended in its current rally.
With all this in mind, we investigate what is yet to happen to INJ price, what stands behind the current explosive value add and just what exactly is so hot about this new Fibonacci warrior that people on Twitter can’t keep quiet about.
INJ price analysis
Reflecting on the October surge of INJ price from $7.16 to $19.14, Fibonacci retracement and extension levels were analyzed. These levels, which were significant resistances in 2021, have been surpassed in 2023. INJ experienced a consolidation phase between $15-18 before climbing again, encountering resistance at the 100% and 127% extension levels, followed by a leap to the 200% level. The Relative Strength Index (RSI) on the daily chart has reached 88, signaling an overbought condition.
Although high RSI values don’t guarantee a pullback, the token might test the $46.35 level several times in the near term, potentially retracing towards $40 before advancing again.
Another metric, the MVRV ratio, has reached a new high, surpassing its November peak. This metric, along with a quiet age-consumed metric, suggests limited token movement, which often precedes a significant selling wave. Considering the high MVRV, profit-taking by holders could impact the token’s upward momentum.
The rally’s momentum is partly due to the growing buzz around the Injective Protocol, an AI-integrated, interoperable blockchain for decentralized finance (DeFi). INJ’s popularity on social media has even surpassed Bitcoin in recent days, as shown in a report by AlphaScan.
What’s behind the price spike
The broader trend of AI in technology is also influencing INJ’s growth. AI projects are gaining traction, and investor interest in AI-powered cryptocurrencies is increasing. Injective’s market ranking and capitalization have improved, with a 5.4% increase in the last 24 hours, as per Gate.io.
The trend of “airdrop farming,” where investors accumulate new tokens, is also contributing to INJ’s rally. Social media discussions indicate several projects built on the Injective Protocol are planning airdrops. In fact, if you go on Twitter now, it seems that there is no hotter topic but the Injective related airdrops. This is cool, but do keep in mind what airdrops are for. The main giveaway tool of the 21st century is used by projects to create activity on the network. A great tool to get started, but most users often rush to sell the token and cash out right away as no one really cares about the project that stands at the helm of an airdrop. This is why, on-chain activity of projects that are currently undergoing an airdrop session must not be taken for something that will remain to be.
Looking ahead, the total market cap of AI and big data tokens is substantial, and the global AI market is projected to grow significantly through 2030. This could bode well for INJ’s future, given its performance and the increasing integration of AI in various sectors.
What on Earth is Injective?
Injective Protocol, commonly known by its ticker INJ, is an innovative player in the blockchain and cryptocurrency arena. It stands out as an interoperable, decentralized finance (DeFi) platform that integrates artificial intelligence (AI) to enhance its functionality and user experience. Designed to offer a high degree of flexibility and scalability, Injective enables users to create and trade on various financial markets, including derivatives, without the need for intermediaries.
This approach not only democratizes access to financial markets but also significantly reduces costs and increases the speed of transactions. Furthermore, its integration of AI technologies positions it at the forefront of the evolving blockchain landscape, offering advanced features and smarter, more efficient operations. As a result, Injective Protocol is increasingly gaining attention in the crypto world for its innovative approach to DeFi and blockchain technology.
How to buy INJ?
Purchasing INJ is a straightforward process especially if you follow a good How to buy INJ guide at Gate.io. With the current upward trajectory of INJ’s value and the bullish sentiment prevailing in the cryptocurrency market, this could be an opportune moment to contemplate including INJ in your investment strategy. So do pay INJ charts a visit and make u your mind whether it’s worth your time and hard earned dollar.