Injective Protocol [INJ] has recently captured the spotlight, displaying signs of a potential bullish breakout in the near future.
As of the latest update, the price of INJ stands at $17.77, marking an 8.08% increase in the last 24 hours and a 5.04% rise over the past week.
With a market capitalization of $1.73 billion and a circulating supply of 98 million tokens, there is a noticeable uptick in interest surrounding this digital asset.
Crypto analyst Captain Faibik has identified a descending wedge pattern on the 3-day chart, hinting at a possible 214% surge upon a breakout.
This pattern, often viewed as a bullish signal, remains unbroken, underlining the importance of patience for potential investors.
INJ Indicators Point to Consolidation
After a thorough review of the technical indicators on the daily chart, INJ appears to be consolidating above the central Bollinger Band situated at $17.77.
The narrowing Bollinger Bands suggest a reduction in volatility over recent trading sessions, hinting at a buildup of momentum for a potential price shift.
Furthermore, the MACD indicator exhibits a bullish crossover, where the blue MACD line slightly surpasses the orange signal line.
Despite this uptrend signal, the MACD histogram maintains a neutral position, indicating that the trend is still evolving.
An examination of the on-chain data unveils a mixed sentiment among INJ holders. Currently, 28.14% of addresses hold INJ at a profitable position below the current $17.75 level.
However, a significant 67.32% of addresses find themselves at a loss (“Out of the Money”) after purchasing INJ at higher prices, particularly within the range of $18.61 to $24.85.
Interestingly, the largest group of profitable buyers acquired INJ at prices ranging between $6.98 and $12.12, showcasing continued optimism among a substantial number of holders.
Merely 4.54% of addresses are breakeven, further supporting the notion of a potential significant price movement in the near future.
DeFi Engagement and Market Liquidity
According to data from DefiLlama, the Total Value Locked (TVL) in the Injective ecosystem amounts to $37.06 million, with stablecoins constituting $22.45 million of this total.
The platform recently recorded a 24-hour trading volume of $10.75 million, with inflows reaching $133,190 within the same timeframe.
This consistent market activity within the DeFi sector indicates sustained interest in INJ, potentially fueling the awaited breakout.