Amid a bearish sentiment prevailing in the crypto market over the past 24 hours, the Injective (INJ) token has managed to turn the tide in its favor. Major cryptocurrencies like Bitcoin, XRP, and Polygon have seen monthly lows, but INJ’s bullish momentum has defied the trend.
INJ Token Breaks Through Bearish Market Sentiment”
After hitting a monthly low of $6.75, support for the INJ token emerged, swiftly sweeping away the bearish momentum. Consequently, the INJ price skyrocketed to a 24-hour high of $7.96 before facing resistance. Currently, bullish sentiment remains robust in the INJ market, as the price surges by 7.08% from the previous day’s low to $7.81.
Breaking through the $7.96 resistance level could trigger further upward movement, possibly testing the next resistance at $8.50. However, should the bulls fail to penetrate this level, a consolidation phase or minor correction might soon be on the horizon.
Surging Market Capitalization and Trading Volume Indicate Strong Demand for INJ
Significantly, INJ’s market capitalization and 24-hour trading volume have surged by 6.79% and 88.20%, respectively, to $650,481,444 and $101,814,365. This notable surge reflects heightened investor interest and activity in the token. The substantial rise in trading volume suggests a strong demand for INJ, which could contribute to further price appreciation.
The Keltner Channel is widening on the INJUSD 2-hour price chart, with the upper, middle, and lower bars touching at 7.9431947, 7.4653180, and 6.9858837, respectively. This widening indicates a period of increased volatility and potential price movement. However, the formation of red candlesticks after hitting the upper band suggests a possible short-term pullback or correction in the price of INJ.
Moreover, the Relative Strength Index (RSI) rating of 59.08, which is pointing downwards, adds to the indication of a potential short-term pullback. A declining RSI suggests that buying pressure may weaken, supporting the possibility of a correction in the INJ token’s price. If the RSI continues to decline and falls below the 50 level, it could further confirm the likelihood of a short-term pullback.
Additionally, the Money Flow Index (MFI) rating of 77.86, showing signs of decreasing, provides further evidence of a potential pullback in the INJ price. The MFI measures the inflow and outflow of money into an asset, and a declining MFI suggests that investors may be starting to sell off their positions. If the MFI continues to decrease and falls below the 70 level, it could reinforce the possibility of a correction in the token’s price.
While the INJ token has shown bullish momentum amidst a negative crypto market sentiment, technical indicators suggest a potential short-term pullback. Consequently, investors should exercise caution and stay tuned for further market developments.