- INJ witnessed massive liquidation near the $41 mark, causing a price correction.
- Market indicators looked bearish, but a few metrics suggested otherwise.
Injective’s [INJ] price action took a sideways path in the last few days, as its chart moved marginally. However, things could soon turn in investors’ favor, as a bullish pattern had started to form on the token’s price chart at press time.
In the meantime, INJ was awaiting its next token unlock, which would push its circulating supply to its maximum.
Injective bulls to enter the market soon?
CoinMarketCap’s data revealed that, after a price pump, INJ witnessed a price correction. Because of this, the token only managed to move up by over 1% in the last 24 hours.
At the time of writing, INJ was trading at $37.41 with a market capitalization of over $3.1 billion, making it the 27th largest crypto.
To better understand what caused the price correction, AMBCrypto checked INJ’s liquidation heatmap. As per our analysis, INJ’s liquidation skyrocketed when its price reached the $41 mark.
The high sell-offs initiated a bear rally, pushing the token’s price down.
Source: Hyblock Capital
The good news was that while the token’s price chart barely moved, a bullish pattern formed on its chart. Captain Faibik, a popular crypto analyst, recently posted a tweet highlighting the fact that a bullish flag pattern formed on Injective’s chart.
$INJ Bullish Flag Formation..!!
Seems lie Ready for Another Bullish Rally.#Crypto #InjectiveNetwork #INJ pic.twitter.com/OcPsNJ7laX
— Captain Faibik (@CryptoFaibik) January 6, 2024
If the token manages to test that pattern, then investors might soon witness a bull rally, allowing INJ to push its price up to a considerable extent.
To check this possibility, AMBCrypto took a look at INJ’s daily chart. Our analysis found that most market indicators remained bearish at press time.
Notably, its Relative Strength Index (RSI) and Money Flow Index (MFI) both registered downticks and were headed towards the neutral mark.
The token’s Chaikin Money Flow (CMF) followed a similar trend, showing increased chances of a price decline.
Source: TradingView
Injective to unlock its maximum supply soon!
While the news of the bullish pattern emerged, X (formerly Twitter) account Token Unlocks revealed that INJ will unlock 100% of its total supply on the 21st of January 2023. Notably, a total of 3.66 million INJ tokens will be unlocked on that day.
This unlock can help increase the token’s social metrics, which will indirectly have a positive impact on its price. At press time, however, INJ’s Social Dominance remained high.
Read Injective’s [INJ] Price Prediction 2024-25
Its Weighted Sentiment also improved, meaning that bullish sentiment was dominant in the market during this time.
Source: Santiment
Not only that, but investors at large seemed to have been buying INJ, as evidenced by the drop in its Supply on Exchanges. Another positive metric was Injective’s MVRV ratio, which remained up throughout the last week until press time.
Source: Santiment