- 1 There has been a significant uptick in token burn auctions, with an expectation to burn 6 million INJ tokens next week.
- 2 Based on technical analysis and market indicators, analysts anticipate a potential increase in INJ’s price.
A blockchain designed specifically for finance purposes, Injective (INJ) offers developers various robust modules, including a decentralized order book for sophisticated applications.
Furthermore, Injective crypto optimized by 3.98% in market value and plummeted by 17.65% in trading volume in the last 24 hours, as per CoinMarketCap. Its market value is $2.544 Billion, and its trading volume is $86.166 Million. There are 93.400 Million INJ in circulation, and liquidity is weak, as the volume-to-market cap ratio stays at 3.34%.
Injective (INJ) Token Burn Auctions Are Rising!
The Injective protocol has witnessed a significant uptick in token burn auctions, with 12,266 INJ tokens being permanently removed from circulation on June 6th, 2024. This trend is expected to culminate in a staggering 6 million INJ tokens burning by the following week.
This systematic reduction in token supply is anticipated to drive increased usage and protocol revenue, leading to an even greater number of INJ tokens being burned.
From a financial standpoint, this update looks more like an optimistic development for the Injective (INJ) ecosystem since token burning has often been done to reduce the available supply. It could potentially grow the demand and price of each remaining token.
$INJ token burn auctions are steadily increasing in size.
— Injective (@injective) June 6, 2024
12,266 tokens were burned forever just today. By next week Injective users will have burned INJ to date
More usage = More protocol revenue = More INJ burned pic.twitter.com/Y9KnATgAxg
For Injective, this could mean a more robust and valuable network, as the reduced supply may enhance the scarcity and demand for INJ tokens.
Technical Analysis of Injective (INJ)
The Injective token price began to show a bullish trend in October 2023, rising from $7.75 to a pattern of higher highs and higher lows. This upward movement continued until it reached a resistance level of $52.10 on March 12th.
During its upward movement, INJ encountered resistance at $44, making three unsuccessful attempts to break through before finally surpassing this level and reaching $52.10. Despite this achievement, the price could not sustain its peak and gradually declined. By mid-May 2024, INJ had established a new support level at $21.0.
There are indications of a potential recovery for INJ, with the downward momentum ceasing and bullish sentiment emerging to establish an upward trendline.
Injective (INJ) Indicator Analysis & Forecast
Additionally, the Injective (INJ) token has shown signs of a forthcoming rise. Although the EMA (50-day and 200-day) indicate a bearish trend, the MACD indicator shows a bullish crossover, with the histogram expanding at 0.168. The RSI stands at 56.09, recovering from near-oversold conditions.
INJ is trading at $26.65, having experienced a slight 0.47% dip in the last 24 hours. The market sentiment remains positive, and if investor interest persists, the price may rebound from its current level. The next targets for INJ are $31.2, followed by $36.0.
$INJ / @injective – 1 Day
— Lord Crypto (@lordcrypto__) June 4, 2024
It's been a while since I looked at the $INJ chart, but today I did, and I can see that it's rearing for a bullish run as the 20 Day MA has crossed the 50D MA assuming a bullish trajectory.
There's also double confirmation on the stochastic RSI with… pic.twitter.com/KPMiNuiFK9
Analyst Lord Crypto shared an optimistic outlook on Injective (INJ) in an X post, suggesting that the long accumulation period that began in April appears to be ending, and an increase in volume could spark a rally on the daily chart.
$INJ
— ionicXBT (@theionicXBT) June 5, 2024
Simple chart.
Flip resistance and we go higher. pic.twitter.com/8SqqjXKrx2
Similarly, IonicXBT highlighted through its tweet post on X that surpassing the weekly resistance could increase INJ’s price. However, failing to hold above the $22.10 support could lead to further price declines.
Summary
In the injective (INJ), there has been a significant uptick in token burn auctions, with an expectation that 6 million INJ tokens will be burned in the following week. There are indications of a potential recovery for INJ, with the downward momentum ceasing and bullish sentiment emerging to establish an upward trendline.
The market sentiment remains positive, with price targets for INJ at $31.2 and $36.0. Additionally, analysts anticipate a potential increase in INJ’s price based on technical analysis and market indicators. However, failing to hold above the $22.10 support could lead to further price declines.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
