At the current time, the price of Injective token (INJ) stands at $27.77, representing a slight decrease of 0.46% in the last 24 hours and a 1.66% drop over the previous week.
The 24-hour trading volume totals $221.5 million, with a market capitalization of $2.73 billion and a circulating supply of 98 million INJ tokens.
Technical analysis reveals that INJ has broken out of a prolonged downward trend, forming a rounded bottom pattern that triggered a strong rally. The $21.65 support level has been consistently defended by buyers, a critical factor for the continuation of the bullish pattern.
Maintaining stability above this significant support level is crucial for the bullish trend to persist. Analysts are eyeing a logarithmic price target of $380, suggesting a potential 12x increase from the current price level if the uptrend remains intact.
Indicators Point to Varied Momentum
Various technical indicators for INJ indicate mixed momentum. In a notable event, the 13-day moving average (MA) recently crossed above the 49-day MA, marking a Golden Cross and signaling a bullish trajectory in November.
However, the token’s price has dipped below the 13-day MA at $29.06 while still remaining above the 49-day MA. A failure to stay above the 49-day MA could lead to a test of the next key support level around $20.31.
The Relative Strength Index (RSI) currently stands at 47.63, indicating a neutral to slightly bearish momentum as it hovers below the 50 mark. The downward trend in RSI suggests decreasing buying pressure.
To restore bullish control, INJ’s price would need to breach the $29.06 resistance level, potentially paving the way for a move towards $32 in the short term.
INJ On-Chain Activity Declines
Data from IntoTheBlock illustrates a decrease in on-chain activity for Injective. During the week ending December 16, there were 654 addresses interacting with the network, including 123 new addresses and 422 active addresses.
The number of new addresses dropped by 21.66% while active addresses decreased by 11.34% over the past week.
Furthermore, a marginal uptick of 1.87% in zero-balance addresses may suggest users relocating funds or closing positions. Despite the overall decline in user engagement, existing user activity continues to provide a foundation for the network.
Futures Market Interest Holds Steady
Coinglass data reveals that Open Interest (OI) in INJ futures amounts to $174.37 million, reflecting a minimal decline of 0.80%. This indicates some profit-taking or reduced short-term trading activity.
However, OI has been on the rise since October, indicating consistent involvement from traders.
Trading volume surged by 9.54% to $271.95 million, highlighting sustained interest in the futures market. The combination of increasing trading volume and stable open interest underlines enduring investor confidence in INJ.
Given the prevailing technical setups, the growing interest in futures trading, and the robust trading volume, the outlook for INJ appears favorable for further upward movement.