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Injective (INJ) Price Consolidation: A Prelude to a Push Towards $40?


As the Injective (INJ) token exhibits a consolidation pattern, market enthusiasts and traders closely monitor on-chain metrics to discern whether the price could be setting up for a leap toward the $40 mark.

Recent data reveals a substantial consolidation phase for INJ, marked by steady network growth and an uptick in daily active addresses.

Injective On-Chain Metrics Show Consolidation

INJ has seen a steady phase of consolidating with its daily active addresses. on April 9, daily active addresses surpassed 1,000 for the first time since January 12. Additionally, network growth, which shows the number of new addresses created daily, sits at 234 as of April 9. An increase from its 2024 low of 130 set on April 4.

This increased activity may indicate heightened user engagement and an accumulation phase as more traders join the network, potentially laying the groundwork for a bullish surge.

Injective Network Growth vs. Daily Active Addresses.
Injective Network Growth vs. Daily Active Addresses. Source: Santiment

Adding to this narrative, INJ’s network growth has steadily increased. This metric, which often precedes price movements, indicates new wallets are continuously being created, signaling fresh capital inflow and a broadening user base.

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Injective Holders at a Crossroads

A closer examination of INJ’s In/Out of the Money (GIOM) data suggests that many addresses bought in between $23 and $31.50, with a notable congregation of ‘In the Money’ addresses within this range.

Essentially, the Global In/Out of the Money (GIOM) classifies addresses based on whether they are profiting (in the money), breaking even (at the money), or losing money (out of the money) on their positions at the current price.

Moreover, 44.27% of INJ holders in this range are in the green. While currently, 42.88% remain in the red. 12.85% remain break-even. The current price remains a pivotal point for holders as any upward movement could push more ‘Out of the Money’ holders into profit.

INJ Average Price Cost. Source: IntoTheBlock
INJ Average Price Cost. Source: IntoTheBlock

INJ Price Prediction: $40 Possible if Bearish Indicators Cool

Lastly, the four-hour price chart for INJ portrays a tight trading range. While the token trades below key moving averages, the consolidation within this band may point to an accumulation by savvy investors who anticipate future price appreciation.

INJ/USDT Price Chart.
INJ/USDT Price Chart. Source: Tradingview

Injective Protocol (INJ) is undergoing a consolidation phase below significant Exponential Moving Average (EMA) levels. Analysts have highlighted the price’s struggle to break above the 20, 50, 100, and 200 EMAs, a scenario typically associated with a bearish sentiment.

However, there’s a glimmer of optimism as the Relative Strength Index (RSI) sits at approximately 21.23. This indicates a potential oversold market condition.

Despite this, the Moving Average Convergence Divergence (MACD) reinforces the prevailing bearish sentiment, with the MACD line trailing below the signal line and a widening negative histogram suggesting mounting downward pressure.

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Finally, as INJ teeters at crucial levels, the possibility of reaching the coveted $40 milestone hinges on a decisive change in market momentum. Technical indicators hint at the possibility of an underlying reversal. Still, only time will reveal if INJ can muster the momentum necessary to overcome bearish barriers and embark on a new upward trajectory. Should the bearish momentum accelerate, INJ will likely retest key support at the $30 price range.

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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


Conclusion

In conclusion, the Injective (INJ) token is currently in a consolidation phase, with on-chain metrics showing signs of growth and increased activity. Daily active addresses are on the rise, indicating heightened user engagement and an accumulation phase. The network growth of INJ is steadily increasing, with new wallets being created consistently. Despite facing bearish indicators such as trading below key moving averages and a bearish MACD, there is optimism for a potential reversal as the RSI signals an oversold market condition. The possibility of reaching the $40 milestone for INJ depends on a decisive change in market momentum, with technical indicators suggesting a potential upward trajectory if bearish barriers are overcome.

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