The price of Injective (INJ) is expected to be bullish in the coming days, helped by investors’ optimism.
While INJ could face some challenges in noting a 27% rise, it would find support from the holders.
Injective Investors Are Pining for a Rise
Injective’s price is preparing to break out of a multi-week resistance to reclaim the losses it endured two months ago. This is highly supported by INJ holders, who are acting in favor of a rise.
This is evident in the active deposits, a metric measuring the total number of unique deposits made on exchanges daily. A spike in this metric is associated with a potential rise in selling.
However, in the case of INJ, this metric has been strictly declining since December 2023. This drawdown proves that investors opt to HODL rather than sell their holdings.
Injective Active Deposits. Source: Santiment
Furthermore, the broader market cues are also turning bullish again, visible in the Moving Average Convergence Divergence (MACD).
The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. It is used to identify potential buy or sell signals based on crossovers, divergences, and rapid rises or falls.
Currently, MACD is exhibiting a bullish crossover after slipping to form a bearish crossover for only the second time in two months.
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Injective MACD. Source: TradingView
Thus, with the investors and market acting bullishly, Injective’s price could rise on the daily chart.
INJ Price Prediction: Look for a Rally
The Injective price is currently testing resistance at $28, aiming to breach the barrier at $30. This would enable INJ to initiate a recovery rally towards $35, marking a potential 22% rise. This is the price point from which the altcoin dropped in mid-April.
The altcoin could capitalize on the investor’s and market’s support to rise back up.
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Injective Price Analysis. Source: TradingView
However, if the breach of $28 and $30 fails, there is a fair chance that the Injective’s price could fall back down to $21. This level has formed the support floor over the past couple of weeks, and a dip in it would invalidate the bullish thesis.
Disclaimer
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