- Injective’s announcement of various fiat on-ramps for INJ and mainnet connection with Kraken will boost liquidity.
- INJ has seen spectacular growth, rising 89 percent in the first half of April and sustaining good volumes at the time of publication.
- If top whales keep selling, the weighted sentiment indicator implies a gloomy conclusion in the following several days.
Injective’s prospects look promising with the growth of DeFi, and this is especially true for its native cryptocurrency INJ. Moreover, the network’s latest update, which provides access to multiple liquidity sources, has further enhanced its potential for substantial liquidity inflows.
In its latest weekly report, Injective disclosed some positive advancements. Notably, the platform integrated several fiat on-ramps for its native INJ token, the most significant improvement.
Injective has confirmed the integration of its mainnet with the Kraken exchange, which is an important announcement for the network as it emphasizes the availability of enhanced liquidity.
Injective’s bullish momentum
Injective’s access to more liquidity options has brightened INJ’s prospects. However, the question remains whether cryptocurrency can maintain its current trajectory.
During the first half of April, INJ demonstrated an impressive bullish performance, surging by 89%. Its price currently stands at $8.98, representing a remarkable 585% rise from its lowest value in 2023.
The impressive year-to-date performance of INJ reflects the cryptocurrency’s significant expansion over the course of this year.
The RSI suggests that INJ is currently overbought, which could potentially result in a rescue rally.
A significant market correction occurred when INJ became overbought at the end of January. If a similar scenario occurs again, it could present an excellent opportunity for short traders.
Selling to take profits during overbought conditions can trigger a selloff, which could be advantageous for short traders. Nonetheless, the bulls are demonstrating a degree of resilience, and there could be further upward movement in the future.
An uptick in volume during the middle of the month suggests that there has been a rise in demand. This typically indicates increased retail demand towards the end of a rally.
Currently, INJ is witnessing decent trading volumes; however, they are considerably lower than those observed on Saturday. Additionally, the weighted sentiment measure saw an uptick in the middle of the month but has been on a downward trend over the last 24 hours.
Based on the weighted sentiment analysis, there is an increased probability of an unfavourable outcome in the coming days.
The fact that many traders, especially those who purchased in Q1, are now profitable is evidenced by the MVRV ratio, which peaked in the last four weeks, thereby providing additional support for the notion that there is a drive to sell.
The bears’ dominance is predominantly contingent on the selling behaviour of the whales. Currently, entities holding more than 10 million INJ tokens possess approximately 74 percent of the INJ circulating supply.
Despite the slight reduction in balances by the same group of large-scale traders in the past few days, more is needed to offset the existing demand.
Regardless of the gradual sell-off by big investors, it is imperative for investors to monitor the market closely. The resolution to this query will ascertain the probability of a considerable price drop soon.