Uncovering what is behind Injective and INJ’s recent gains
- Injective registered a strong surge in volumes as excitement took over the network
- INJ found favor with the bulls, but the rally could soon yield some sell pressure
The Helix DEX has so far brought a lot of attention to Injective’s ecosystem. In fact, the latter has been enjoying significant volume growth too, as is evident in its volume surge over the last 24 hours.
Is your portfolio green? Check out the Injective Profit Calculator
The Injective order book reportedly pulled off over $46 million worth of trading volume in the last 24 hours alone. This outcome builds on the healthy volume growth that we have observed over the last few weeks. The surging on-chain volume could reportedly be linked to multiple upcoming dapps being deployed on Injective.
— Iryna | Everstake ? (@iryna_everstake) October 20, 2023
The reality attached to Injective’s volume is that it has been growing for the last few weeks. This was largely courtesy of hype around the pre-launch futures. It may have also be driven by excitement over INJ token’s staking rewards.
Let’s take a look at Injective’s latest volume performance for a better grasp of its recent outcome. Consider this – Injective’s on-chain volume has been rallying since mid-October, with the same recently peaking towards a new monthly high on 19 October.
The recent volume surge correlates with Injective’s recent market cap rally. Its market cap soared from a low of $606.3 million on 11 October to $737 million in the last 24 hours. Injective’s native coin INJ posted a 39% rally during the same period too.
INJ could be due for a bearish retracement
INJ was exchanging hands at $8.89, at press time, and there are signs that short-term profit-taking could be on the cards too. The first major reason is that its latest rally just pushed into overbought territory on the charts.
Some of INJ’s on-chain metrics also seem to align with the sell pressure expectations. For example, the supply held by top addresses dipped slightly over the last 3 days, suggesting that some top whales are taking profits.
Also, the weighted sentiment tracked lower over the same period, suggesting that there are a growing number of traders anticipating a pullback.
INJ’s supply distribution also seemed to demonstrate a similar observation. In fact, addresses holding over 1 million coins recently showed signs of some outflows, indicating a high probability that sell pressure might take over in the next few days.
Read about Injective’s price prediction for 2024
Here, it is also worth noting that INJ bulls have so far maintained strong resilience against surging sell pressure. This could be because of the recently observed shift in market sentiment from a short-term to long-term term hodl.
Also, there is still some room for more upside before the price pushes into its next resistance range above the $9.6 price level.