- INJ experienced a price correction after liquidations near the $41 mark, with market indicators initially appearing bearish.
- A bullish pattern has formed on INJ’s price chart, and its upcoming 100% token unlock could positively impact its market presence.
The Path to a Bullish Surge for Injective
As Injective (INJ) gears up for its next significant milestone — the 100% token unlock — the crypto asset is exhibiting signs of a potential bullish turnaround. This development comes amidst a recent price correction that saw the token grappling with market volatility.
$INJ Bullish Flag Formation..!!
— Captain Faibik (@CryptoFaibik) January 6, 2024
The Correction and Potential Bullish Reversal
CoinMarketCap data indicated that INJ underwent a price pump followed by a correction, resulting in a marginal 1% increase over the last 24 hours. At the time of writing, INJ was trading at $37.41, with a market capitalization of over $3.1 billion, ranking it as the 27th largest cryptocurrency.
A detailed analysis of INJ’s liquidation heatmap revealed a significant increase in liquidations as the price reached the $41 mark. This surge in sell-offs contributed to a bearish rally, pushing the token’s price down. However, a bullish flag pattern observed on INJ’s chart suggests a potential upcoming bull rally.
Market Indicators and Analysis
A deeper dive into INJ’s daily chart showed that while most market indicators remained bearish, some metrics hinted at a positive shift. The Relative Strength Index (RSI) and Money Flow Index (MFI) were trending towards neutral, and the Chaikin Money Flow (CMF) also indicated a possible price decline.
The Impact of 100% Token Unlock
An impending full token unlock for INJ, slated for January 21, 2023, has captured market attention. Approximately 3.66 million INJ tokens will be released, potentially impacting the token’s social metrics and price positively. Current social dominance metrics and a rise in weighted sentiment indicate a dominant bullish sentiment in the market.
Additionally, a decrease in the Supply on Exchanges metric suggests an increasing trend of buying among investors. The MVRV ratio has also been on the rise, further cementing the potential for a bullish outlook for INJ.
Looking Ahead for INJ
As the date of the 100% token unlock draws closer, the market is closely watching the potential impact on INJ’s price and market presence. With indicators showing mixed signals but leaning towards a bullish pattern, INJ could be on the verge of a significant market movement. Investors and market analysts alike are keeping a keen eye on how these developments unfold, marking a crucial period for INJ and its stakeholders.