- Injective price remains within the foothold of a descending trendline, governing the pattern since December.
- INJ could reclaim the popular $40.00 level, a 20% climb if it overcomes the slope.
- A candlestick close below $31.00 on the daily timeframe would invalidate the bullish thesis.
Injective (INJ) price has been on a subtle downtrend since late 2023, consolidating below a descending trendline that progressively capped its upside potential. After a 30% suppression, the AI crypto coin may finally be ready for a move north.
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Injective could rise 20%
Injective (INJ) price could make a 20% climb to the $40.00 psychological level. However, this depends on whether the bulls can push past the immediate barricade at $34.09 and shatter the resistance due to the 50-day Simple Moving Average (SMA) of $36.93.
Clearing these two blockades would bring the Injective price to confront the formidable descending trendline standing between INJ and its $40.00 target.
The 100- and 200-day SMA at $28.02 and $17.97 levels provide additional layers of support, showing the market is leaning to the upside. Notably, with the buy-side liquidity collected during the January 23 liquidity grab, there is no effective pull south on INJ.
Meanwhile, bullish momentum is building, as seen with the uptick in the Relative Strength Index (RSI), a sign of rising momentum.
INJ/USDT 1-day chart
On-chain metrics tilting the odds in favor of bulls
Santiment’s exchange flow balance metric shows a negative reading (-2112), meaning more tokens flowed out of exchanges than what flowed in. This means more holders are not looking to sell than those who want to sell. The metric shows the difference in the amount of tokens moving to and out of exchange wallets.
Also, the exchange inflow metric shows reducing volumes on the spikes, suggesting a general drop in INJ holders transferring their holdings to exchange wallets. With this, short-term sell pressure continues to dwindle.
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INJ Santiment: Exchange flow balance, exchange inflow
The daily active addresses, social dominance, and social volume metrics are also dropping. With less number of unique addresses being created, coupled with an effective drop in the number of INJ token mentions, the possibility of FOMO (fear of missing out) is bound to be at a minimum, and with it, volatility, giving the Injective price the ambiance to recover.
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INJ Santiment: Daily active addresses, Social dominance, Social volume
This is because when tokens trend with rising social volumes, mainstream talk leads to FOMO, and with it price tops, precipitating a correction.
On the flip side, if traders start booking profits for the 7% gains made on Wednesday, the Injective price could pull south. A break and close below $31.00 would invalidate the bullish thesis. In the dire case, INJ market value could drop to the 100-day SMA at $28.02.
