Injective [INJ] experienced a notable 16% price surge on 17 October right after Upbit, the largest cryptocurrency exchange in Korea, revealed its listing of the token on their platform. This sudden increase pushed INJ from $20 to $23, driven in part by a significant 112% rise in daily trading volume.
While the surge has slightly tapered off at the moment, the listing holds significance due to the impact Upbit’s listing had on a specific altcoin – MEW.
MEW, a cat-themed memecoin, was introduced in March and had been listed on various exchanges like Bybit and OKX. However, it wasn’t until Upbit’s listing in September that the coin witnessed a remarkable surge in value.
The sudden spike can be attributed to Upbit’s status as the largest cryptocurrency trading platform in Korea, prompting questions about whether INJ will mirror MEW’s trajectory.
Is the Bullish Trend Sustainable?
It remains uncertain whether INJ’s bullish momentum post-listing will endure. The price movement post-update seemed to be influenced by Futures market speculators rather than the spot market.
Data from Coinalyze showed a surge in INJ Open Interest on the Binance exchange by over 15 million, suggesting that leveraged traders were driving the rally, while spot demand appeared subdued, evidenced by the low spot CVD (cumulative volume delta).
CVD measures the buying and selling volumes across exchanges, with a decrease indicating a dominance of selling volume. The recent pump on Thursday reinforced INJ’s bullish market pattern, showcasing higher highs and higher lows throughout October.
Despite tapping the range-high of the descending channel (yellow), the surge failed to definitively break the downtrend structure.
Although a breakout for INJ is plausible, the token has experienced significant capital outflows since late September, as indicated by the southbound Chaikin Money Flow (CMF). Limited capital inflows might impede the breakout potential.
Currently, INJ has found support at the 50-day EMA and could potentially initiate another upward movement from this level. Should this occur, the next targets could be $24 or $28, particularly if the bullish momentum persists in the coming days.
It’s noteworthy that smart money on Binance has taken a net long position on INJ, with 55% of positions banking on the token’s price appreciation.