Will INJ’s bullish upside get another boost after Injective’s latest launch?

  • Injective makes an important interoperability stride through inEVM which could unlock easier access to liquidity.
  • Assessing whether INJ’s bullish recovery could see more upside.

The vision of interoperability in DeFi is gradually taking shape and Injective is at the forefront courtesy of its recent launch. The Injective network’s latest launch underscores some degree of interoperability with Cosmos [ATOM] and Solana [SOL].

Is your portfolio green? Check out the Injective Profit Calculator

Injective’s newest development is its first-ever Ethereum Virtual Machine (EVM) called inEVM. The latter was reportedly developed in collaboration with layer 2 rollup infrastructure platform, Caldera. However, the key highlight of the launch is that inEVM will allow Ethereum developers access to Injective protocols.

Another key advantage that expands on interoperability is that the new EVM will make it possible to compose dApps on Cosmos and Solana. This will allow Ethereum developers to unlock a new level of interoperability. Some of the potential benefits of this developments will include easier flow of liquidity across these ecosystems.

DApp interoperability means the world is now closer to cross-chain applications that run on multiple networks. While this is an area less explored, Injective’s new development indicated that such a reality was now closer than ever before.

Assessing the state of the INJ token

Speaking of developments, the launch of the inEVM aligned with a robust surge in development activity observed in the last two days. Healthy development activity often attracts more confidence among investors.

Injective development activity

Source: Santiment

Unfortunately, the development has so far not had much of an impact on investor sentiment since the announcement. The weighted sentiment metric was still at its lowest level in the last four weeks at the time of writing. Despite that, its social dominance metric achieved a substantial uptick following the announcement. However, that uptick was short-lived.

Injective weighted sentiment and social dominance

Source: Santiment

The low sentiment might foreshadow INJ’s next move. The token traded at $7.47 at press time, which represented a 16% premium from its lowest point in the last four weeks.

This makes it one of the best gainers within the last two weeks. In fact, it is one of the best performers in 2023 so far considering that its press time price represented a 500% premium from its lowest price this year.

INJ price action

Source: TradingView

Read about Injective’s price prediction for 2023/2024

INJ can see some more upside before retesting the next resistance level or before it gets overbought in the short term. Its Money Flow Index (MFI) suggested that it was already experiencing a demand slowdown. This may curtail the bullish action that has prevailed for just over a week.

Source link