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This Is How an Injective (INJ) Price Breakout Could Fail  

2 mins
Updated by Ryan James
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In Brief

  • Injective’s price marked a nearly two-month high after closing above the barrier at $28.
  • Chaikin Money Flow shows that the outflows are at their highest since April, creating selling pressure.
  • Investors, too, are heavy on selling, evidenced by the fact that 31% of the participants are in profit.
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The injective (INJ) price did note a bullish development, but this may not be sustained owing to rising investor skepticism.

The increasing selling pressure is evident in the actions of the INJ holders, which is reducing the chances of recovery. 

Injective Holders Are Moving Their Holdings

Injective’s price is bearing the brunt of the surge in selling among investors, which is increasing the outflows on the network. Chaiking Money Flow, sitting at a two-month low, is evidence of this.

The Chaikin Money Flow (CMF) is a technical analysis indicator measuring the volume-weighted accumulation and distribution average over a specific period. It helps traders identify the strength of a trend by analyzing the relationship between price movements and trading volume.

The indicator’s presence above 0 suggests rising buying pressure, while a dip below it suggests increasing selling pressure. Currently, INJ is witnessing the latter, with the indicator sitting at April lows.

Injective CMF.
Injective CMF. Source: TradingView

The actions of investors themselves further substantiate this outflow. Upon observing active addresses by profitability, one can note that the investors in profit have considerable domination.

This cohort’s participation hints at potential selling, and their domination of more than 25% is a bearish sign. In the case of INJ, their presence dominates 31% of all active addresses, making the case for a bearish outcome.

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Injective Active Addresses by Profitability.
Injective Active Addresses by Profitability. Source: IntoTheBlock

INJ Price Prediction: Breakout May Breakdown

Injective’s price, trading at $29.3, is close to the resistance at $30.9, but in order to breach it, the rally would need to continue. Given that the altcoin recently broke out of the consolidation between $28.0 and $21.3, it seems possible.

However, the aforementioned conditions suggest a different route for INJ. The breakout could fail, and Injective’s price could fall back below $28.0, making it vulnerable to consolidation again.

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Injective Price Analysis.
Injective Price Analysis. Source: TradingView

Nevertheless, if INJ bounces back from $28.0, having already closed above it, it could prevent the decline. This would also enable the altcoin to breach $30.9, invalidating the bearish thesis.



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.

Aaryamann Shrivastava
As a Mass Media (Journalism) graduate, my journey into cryptocurrency journalism has evolved into a distinguished role as an On-Chain Analyst over the past two and a half years. Collaborating with industry-leading media companies like FXStreet, AMBCrypto, and FXEmpire, I’ve delved deeply into the intricate realms of Crypto and Blockchain, crafting over 2,500 meticulously curated SEO-focused articles. Driven by a commitment to excellence, I remain steadfast in delivering the highest caliber...