- INJ witnessed a massive liquidation around $41, causing a price correction.
- The market indicators seemed bearish, but some numbers showed otherwise.
Injectives [INJ] The price action has been on a sideways path over the past few days as the chart moved marginally. However, things could soon turn in favor of investors as at the time of writing, a bullish pattern has begun to form on the token’s price chart.
In the meantime, INJ waited for the next token unlock, which would bring the circulating supply to the maximum.
Injective bulls on the market soon?
CoinMarketCaps facts revealed that after a price pump, INJ witnessed a price correction. As a result, the token has only risen by more than 1% in the past 24 hours.
aAt the time of writing, INJ was trading at $37.41 with a market cap of over $3.1 billion, making it the 27th largest crypto.
To better understand what caused the price correction, AMBCrypto checked INJ’s liquidation heatmap. According to our analysis, INJ’s liquidation skyrocketed when the price reached the $41 mark.
The high sell-off caused a bear rally, causing the token’s price to drop.
Source: Hyblock Capital
The good news was that even though the token’s price chart barely moved, a bullish pattern formed on the chart. Captain Faibik, a popular crypto analyst, recently posted a tweet highlighting the formation of a bullish flag pattern on Injective’s chart.
$INJ Bullish flag formation..!!
It looks like the lie is poised for another bullish rally.#Crypto #InjectiveNetwork #INJ pic.twitter.com/OcPsNJ7laX
— Captain Faibik (@CryptoFaibik) January 6, 2024
If the token manages to test that pattern, investors could soon witness a bull rally, allowing INJ to significantly boost its price.
To check this possibility, AMBCrypto took a look INJ‘s daily chart. Our analysis showed that most market indicators were still bearish at the time of writing.
It is striking that the Relative Strength Index (RSI) and the Money Flow Index (MFI) both showed a decline and moved towards the neutral limit.
The token’s Chaikin Money Flow (CMF) followed a similar trend and showed a higher chance of a price drop.
Source: TradingView
Injective to unlock the maximum offer soon!
As news of the bullish pattern emerged, X (formerly Twitter) took notice Token unlocks revealed that INJ will unlock 100% of its total supply on January 21, 2023. Notably, a total of 3.66 million INJ tokens will be unlocked on that day.
This unlock can help increase the social stats of the token, which will indirectly positively impact the price. However, at the time of writing, INJ social dominance remained high.
Read Injectives [INJ] Price prediction 2024-25
Weighted sentiment also improved, meaning bullish sentiment was dominant in the market during this period.
Source: Santiment
Not only that, but investors in general seemed to have bought into INJ, as evidenced by the drop in supply on the exchanges. Another positive metric was Injective’s MVRV ratio, which continued to rise over the past week as of press time.
Source: Santiment