Injective Price Forecast – Potential 36% Surge for INJ by the End of December
Entering December 2024, Injective [INJ] has experienced an impressive 82% year-to-date surge, hitting an all-time high of $52.72. A recent breakout above the $30 mark indicates the potential for a further 36% rally.
What sets Injective apart in the DeFi sector is its unique offering of zero-gas decentralized derivatives and cross-chain trading features. Notably, its focus on efficiency and deflationary tokenomics distinguishes it from competitors like DYDX.
Could INJ Hit a New All-Time High Post-Breach of $30?
Analysis of the weekly chart for Injective reveals a strong upward momentum, with INJ currently trading at $32.33, marking a 7.86% increase for the week.
The price level range between $28.00 and $30.00 has proved to be a pivotal support area, successfully reclaimed following earlier consolidation in 2024.
The recent rally has been fueled by a strong demand zone, indicating an optimistic phase characterized by higher highs and higher lows since mid-2024.
Maintaining a steady upward trajectory within a rising channel on the 4-hour chart, INJ broke above the $22.96 support level, resulting in a 41.72% surge in recent sessions.
This breakout hints at further potential, with resistance seen at $42.00, presenting a 28.02% upside from current levels. As long as the lower boundary of the channel continues to provide support, the bullish trend is likely to persist.
Is Increased User Activity Vital for INJ’s Momentum?
Observing the number of large transactions, there was an initial uptick from around ten per day in early September to approximately sixty per day on the 21st of September. This surge correlated with INJ’s price increase from $22.96 to $32.00.
Subsequently, large transactions declined to an average of five to ten per day in October, coinciding with a price consolidation phase between $28.00 and $32.00. However, the number of large transactions began rising again in November, peaking at fourteen transactions on the 26th of November as the price breached $30.00.
Profitability Insights: Key Levels and Address Distribution
Analysis from IntoTheBlock reveals that 57.55% of INJ wallet addresses (24.9k) are currently “In the Money,” holding INJ purchased below the present price of $32.19, indicating profits. On the other hand, 33.32% (14.42k addresses) are “Out of the Money,” having acquired INJ above the current price, reflecting unrealized losses.
Moreover, 9.13% (3.95k addresses) fall into the “At the Money” category, where INJ was purchased around the current price, resulting in a break-even scenario. The profitable range extends to $29.62, while losses begin above $33.80, showcasing a detailed distribution of holder profitability.
Technical Analysis Confirmation on Lower Time Frame
Technical indicators signal a bullish trend for INJ on the lower time frame. The Ichimoku Cloud suggests a bullish momentum with the price above the cloud, while the TSI indicator displays a bullish crossover, indicating growing buying pressure as the short-term momentum line surpasses the long-term line.
Furthermore, a CMF value of 0.04 indicates mild positive money flow, signifying strengthening buying interest in the market.