Injective [INJ] might be on the brink of a bullish recovery. The digital asset recently emerged as one of the leading AI tokens in terms of social interaction, alongside other indicators suggesting resurging interest.
Per insights from LunarCrush Analytics, INJ recently secured the second spot in the roster of AI tokens with the most social engagement.
This uptick in social attention could potentially impact the token’s performance in the current period.
Furthermore, this surge in social sentiment coincided with a notable rise in Open Interest over the past two days. INJ’s Open Interest surged by approximately $20.12 million during this timeframe.
While this surge might seem modest on a broader scale, it highlights a recovery in open interest following a dip over the final weeks of 2024.
After hitting a recent low of $115.53 million on December 23rd, Open Interest has been gradually climbing. Over the last 24 hours, OI surged by 22.12%, alongside a 9.45% spike in trading volume during the same period.
These metrics confirm a rebound in accumulation and bullish interest.
INJ Price Movement Reflects Shift in Social Sentiment
INJ bears seemed to have relinquished their control as 2024 came to a close. The token was trading at $21.91 at the time of writing, marking a 14.80% surge in the first two days of 2025.
The money flow index for INJ indicates renewed liquidity flow into the token. This heightened demand could potentially drive INJ back towards its December peak, signaling a potential 60% rally.
Analysis of spot flows indicates INJ might be gearing up for a strong bullish phase. Heavy outflows dominated December, contributing to a significant retracement.
Nonetheless, outflows have tapered off recently, suggesting a shift towards inflows.
Spot flows turned positive in early January, with almost $1 million in inflows. Although inflows remain moderate, there is potential for their gradual increase in the days ahead.
INJ displayed a stronger performance in the first part of 2024 compared to the latter half. Its lag in the second half of the year hints at a potential undervaluation of the token.
This undervaluation could position INJ as an appealing investment opportunity in 2025, particularly given its upside potential, especially if the narrative around AI tokens gains traction.