-Injective unlocks new liquidity avenues for INJ, strengthening its bullish outlook.
-INJ bulls hold strong for a while longer as evidence of a possible retracement pile-up.
The future looks bright for Injective as DeFi continues to shape up, and the same can be said for its native cryptocurrency INJ. More so, considering the network’s latest announcement which puts it on the fast lane for heavy liquidity inflows.
Is your portfolio green? Check out the Injective Profit Calculator
Injective released its latest weekly update revealing multiple positive developments. The most notable one was that the network activated multiple fiat on-ramp for native INJ.
Injective also confirmed its mainnet integration with the Kraken exchange. These announcements are important for the network because they underscore more access to liquidity.
In the past few days
-One of the largest Web3 companies @krakenfx integrated the Injective mainnet
-New RWAs were introduced with @PythNetwork
-Fiat on-ramps for native INJ went live
-First Injective Hackathon started 🛠️
-Dual rewards integrated on @astroport_fi— Injective 🥷 (@Injective_) April 16, 2023
INJ set to maintain the explosive growth?
INJ’s future looks a whole lot brighter now that Injective has access to more liquidity avenues. But can the cryptocurrency sustain its current trajectory?
INJ delivered a strong bullish performance in the first half of April during which it rallied by 89%. Its $8.76 press time price represented a 585% upside from its lowest 2023 levels.
Source: TradingView
INJ’s impressive YTD performance demonstrates just how much the cryptocurrency has grown so far this year.
A relief rally might be in the works now that INJ is deep in overbought territory as indicated by the RSI.
A sizable price correction followed the last time that it was this overbought at the end of January. Short traders might have a decent opportunity if history repeats.
How many are 1,10,100 INJs worth today?
A robust profit-taking in overbought conditions may trigger a selloff that would represent an ideal opportunity for short traders. However, the bulls demonstrate relative strength for now, and more upside could still be on the cards.
On-chain analysis
A strong mid-month volume surge confirms higher demand. This likely demonstrates a wave of retail demand coming in towards the tail end of the rally.
INJ maintained healthy volumes at press time, albeit notably lower than its volume on Saturday. Also, the weighted sentiment metric surged towards mid-month but it has been leaning in favor of a bearish expectation for 24 hours.
Source: Santiment
The weighted sentiment observation underscores a higher probability of a bearish outcome within the next few days.
This is further backed by the fact that there is some incentive to sell since many traders, especially Q1 buyers, are now in the money as indicated by the MVRV ratio which was at its highest level in the last four weeks.
Source: Santiment
Whether the bears will take over largely depends on whether whales will start selling. So far addresses holding over 10 million INJ control over 74% of INJ’s circulating supply.
The same whale category has drawn down their balances slightly in the last few days. However, it has not been enough to offset the prevailing demand.
Source: Santiment
Although the top whales are gradually selling, investors should keep an eye out for whether the same trend will continue. It will dictate whether a notable pullback might be on the cards.
