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Injective Price Prediction: Is INJ a Safe Buy Now After 20% Fall?

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The Injective Protocol (INJ), a blockchain tailored for finance, saw a follow-on decline and slipped below the key moving averages. The token highlighted a severe fall of over 50% in the last 45 sessions and dragged below the support mark of $30.

The Injective token is trading in a downtrend and faced rejection from the 200-day EMA, replicating the seller dominance. The token remained under pressure for the past weeks and persisted in eroding gains.

A range breakdown was recently glimpsed, and fresh selloff activity was noted. However, the token looks oversold, and a short-term bounce may be seen.

At press time, the Injective token (INJ) price traded at $23.02 with an intraday drop of 1.02%, reflecting follow-on selling pressure on the charts. It has a monthly return ratio of -29.10% and 190% yearly. 

The pair of INJ/BTC is at 0.000390 BTC, and the market cap is $2.08 Billion. Analysts are neutral and suggest that the INJ crypto may register a short-term bounce and will soon retest the $30 mark.

Injective (INJ) Price Action: Navigating Market Dynamics

Since the beginning of 2024, the INJ token price has traded sideways, and range-bound movements were spotted on the charts. Followed by the market selloff, the token has registered a range breakdown and breached the 200-day EMA mark.

Source: Santiment

The token depicts a lower low structure and is traded inside a falling channel, and buyers have failed to sustain the 200-day EMA mark and faced rejection. 

However, current market sentiment is bearish, and the buyers need adequate momentum to initiate a potential bull run. Per the analysis of technical indicators, 14 indicators have given a sell rating, 9 have given a neutral call, and 3 have given a buy call.

The RSI curve stayed in the oversold region, and a negative crossover was noted on the charts. Additionally, the MACD indicator showed a bearish crossover and formed red bars on the histogram.

Injective Daily Transaction Skyrocketed Above 2.4 Million, What Does It Mean?

Per the data provided by Artemis on the X platform, Injective (INJ) has noted an ATH (All Time High) in the daily transaction activity.  In the intraday session, the daily transaction value rose to 2.4 million, signifying an increase in the investor’s activity.

Source: Twitter

However, investors are in a dilemma and still need to be more confident about making fresh positions. A break and close above $30 only mean fresh buying momentum. Otherwise, the selling pressure will remain intact.

What Does Development Activity and Open Interest Data Suggest?

Per the Santiment data, the development activity data witnessed a notable decline and reflected an intraday drop of over 3.28% to 306. 

Source: Santiment

However, the derivative data signifies short buildup activity, and the open interest value spiked over 1.90% to $40.04 Million, highlighting the selling pressure.

Injective’s market capitalization has dropped by 3.32%, reaching $2.08 billion and ranking it 50 in market cap listings. The 24-hour trading volume for INJ has also declined by over 25.22%, decreasing to $79.33 million.

Summary

The Injective Protocol (INJ) looks bearish on the chats and has underperformed in the past weeks. However, the token has corrected and dragged to the demand zone, possibly leading to a short-term rebound.

Technical Levels

Support Levels: $20 and $18

Resistance Levels: $26 and $30

Disclaimer

The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. 

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