There are indications that Injective [INJ] might be gearing up for a bullish revival. The digital asset has recently emerged as one of the leading AI tokens in terms of social interaction, suggesting a renewed wave of interest in the coin.
As revealed by data from LunarCrush Analytics, INJ has recently clinched the second spot among AI tokens with the highest levels of social engagement.
This surge in social interest could have an impact on the coin’s performance in the near future.
In addition to the spike in social sentiment, there has been a noticeable uptick in Open Interest over the past couple of days. INJ’s Open Interest has surged by approximately $20.12 million during this period.
While this increase may not seem significant in the broader context, it indicates a rebound in open interest following the downturn witnessed during the final three weeks of 2024.
After hitting a local low of $115.53 million on December 23, Open Interest has been on an upward trajectory. There has been a 22.12% increase in OI in the last 24 hours, accompanied by a 9.45% surge in trading volume during the same timeframe.
These developments affirm a resurgence in accumulation and bullish demand.
INJ Price Movement Reflects Social Sentiment
The dominance of bearish sentiment over INJ seems to be waning as 2024 drew to a close. The current price of the token stands at $21.91, marking a 14.80% surge in the first two days of 2025.
The money flow index for INJ indicates a renewed influx of liquidity into the coin. With strong demand, INJ could potentially revisit the highs seen in December. Should this materialize, the coin could witness a rally of nearly 60% from its current levels.
Analysis of spot flows suggests that INJ might be primed for another substantial bullish upswing. December witnessed dominant spot outflows, contributing to its significant retracement.
However, there has been a decline in outflows, paving the way for a potential resurgence in inflows.
In the initial days of January, there was a switch in spot flows to positive, with almost $1 million in inflows. While the inflows remain modest at present, they could gain traction in the days ahead.
INJ displayed a stronger performance in the first half of 2024 compared to the latter half. The underperformance in the latter part of the year signals that the coin may still be undervalued.
This undervaluation could position INJ as an appealing asset in 2025, especially considering its potential for upward movement, particularly if the narrative around AI tokens continues to hold sway.